May 9, 2011
LinkedIn Begins IPO
LinkedIn plans to sell shares for $32 to $35 each in an initial public offering (IPO), which is considered on of the firsts for a major U.S. social networking site.
LinkedIn said it would offer 7.85 million shares in its IPO.
The professional social networking site said the offering could raise up to $274.4 million. LinkedIn believes its net proceeds would be about $146.6 million after expenses.
LinkedIn's debut could pave the way for other popular online services that connect with people that have common interests.
The social network has over 100 million members. Most of its revenue comes from fees that it charges for recruiters and businesses that want expanded access to the website to help fill job openings.
LinkedIn posted net income of $3.4 million last year on revenue of $243.1 million. Its revenue has more than doubled in the first three months of this year, compared to the same period a year ago.
IPO analyst Scott Sweet said the social network was expected to price its shares on May 18. The site expects to trade under the symbol "LNKD" on the New York Stock Exchange.
Social media companies like Twitter, Groupon and Zynga are seeing multibillion dollar valuations of their shares trading on the secondary market.
Renren Inc., one of the biggest social networking companies in China, made its trading debut last week. Its stock surged 28.6 percent in its May 4 debut.
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