With the LinkedIn IPO getting a step closer, the price range has been hiked to $42-45, against the originally planned $32-35 a share. According to analysts, this hefty increase of 30 per cent points to strong investor demand for an offering that is expected to be many times oversubscribed.
LinkedIn, whose value on the secondary exchange remained at roughly $2.5 billion, on Tuesday said in a regulatory filing that it could raise as much as $405 million.
The initial public offer at $42 to $45 a share values the social networking site at $4.3 billion.
LinkedIn Corporation is now offering 7.84 million shares at $42-45, and, of the 7.84 million shares offered, 4.83 million are primary shares while 3 million shares are secondary shares offered by selling by stockholders, including Bain Capital Ventures, Goldman Sachs, the Mcgraw-Hill Companies and certain executive officers and directors.
Investors Sequoia Capital, Greylock Partners and Bessemer Venture Partners, which would between them own around 37.5 per cent of the company post IPO, are not selling in the issue.
According to analysts, at the midpoint of the new range, the company would have a market capitalisation of just over $4 billion.