Bloomberg News

LinkedIn Boosts Offering to $1.2 Billion After Share Rally (1)

September 05, 2013

LinkedIn Corp. (LNKD:US), owner of the world’s most popular professional-networking website, boosted its planned share sale by 20 percent to $1.2 billion.

LinkedIn is selling 5.38 million shares of its Class A stock for $223 a share in an offering that’s expected to close on Sept. 10, the Mountain View, California-based company said yesterday in a statement. That’s a 6.7 percent discount to the closing stock price yesterday.

Membership on LinkedIn has more than doubled since the company’s initial public offering in 2011, spurring a fivefold increase (LNKD:US) in the stock. LinkedIn has raised revenue by adding features to keep users on the site for longer and by raising subscription prices.

LinkedIn rose (LNKD:US) 1.2 percent to $241.81 at 10:09 a.m. in New York.

The offering is about three times the size of LinkedIn’s IPO, even as the company is selling fewer than two-thirds the number of shares. The underwriters, which include JPMorgan Chase & Co. and Morgan Stanley, have been granted a 30-day option to purchase as many as 807,174 additional shares.

LinkedIn increased the offering amount from Sept. 3, when it announced plans to raise $1 billion. Selling new shares dilutes the stakes of existing equity holders.

To contact the reporter on this story: Ari Levy in San Francisco at alevy5@bloomberg.net

To contact the editor responsible for this story: Pui-Wing Tam at ptam13@bloomberg.net


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Companies Mentioned

  • LNKD
    (LinkedIn Corp)
    • $219.09 USD
    • -1.21
    • -0.55%
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