On High Demand LinkedIn IPO Prices at Top of Range
Investors are eager to buy a piece of social media companies.
LinkedIn, the first major social media company to go public, just priced it's IPO at $45.
That's the very top of the $42-$45 range the company announced earlier this week, which is 30 percent higher than it originally expected to price.
LinkedIn's IPO will raise $352 million for the business networking company, putting its market cap at $4.25 billion. Investors were impressed by the fact that the company's revenue doubled last year from the year before. And they weren't scared off by the fact that in its prospectus LinkedIn warned that it doesn't expect to be profitable this year on a GAAP basis.
LinkedIn will start trading Thursday morning on the NYSE under the ticker "LNKD." And investors will watch very carefully how it moves for indications of whether other social media companies like Facebook and Zynga will choose to follow in LinkedIn's footsteps. It's not just Wall Street who will be watching; Silicon Valley VCs will also be examining trading for a sense of the potential for them to exit from investment.
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