LinkedIn’s initial public offering (IPO) has been success after its shares opened at $45 (£27.86) on the New York Stock Exchange, and then more than doubled.
As of 10:30 EST, LinkedIn’ s stock traded at $85.90 (£53.19) a share under the ticker symbol “LNKD.”
For the IPO, A total of 7.84 million shares are being made public, according to a company statement. Some 4.8 million shares are being offered by LinkedIn, with the remaining 3 million-plus shares offered by stockholders looking to sell.
LinkedIn is a professional social network that lets its 100 million users in more than 200 countries list their resumes and connect with colleagues and recruiters. The company makes money from premium subscriptions, advertising for businesses and hiring services for recruiters.
With more than 100 million users, LinkedIn has a solid network of professionals hawking their talents, but the company only made $15.4 million (£9.5m) last year on $243 million (£150m) in revenue.
Silicon Alley Insider explained the reasoning behind the IPO pricing, as well as what Wall Street really expects from the company.
LinkedIn has warned in a regulatory filing that its growth rate will slow as the company boosts spending on technology.
LinkedIn’s worth is a pinch compared to Facebook, which is certainly a LinkedIn rival as professionals and potential employers certainly connect on the social network of 600 million-plus users.
Facebook has racked up $1.5 billion (£929m) in funding to date from Goldman Sachs and Digital Sky Technologies. However, most expect that investment to pay off exponentially, with social advertising booming and Facebook’s “Like” button spreading across the web.
Some experts expect the company to file an IPO by 30April, 2012, when it will have to disclose its finances under SEC rule.
When Facebook does go public, it will easily dwarf LinkedIn’s net worth. Still, LinkedIn’s opening has to be stunning for those analysts who openly questioned the company’s worth.
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