LinkedIn Boosts Offering to $1.2 Billion After RallyAri Levy
LinkedIn Corp., 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.
LinkedIn rose 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.