LinkedIn Boosts Offering to $1.2 Billion After Rally
LinkedIn Corp. (LNKD), 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 in the stock. LinkedIn has raised revenue by adding features to keep users on the site for longer and by raising subscription prices.
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.
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