Professional networking site LinkedIn Corporation is scheduled to raise as much as $274 million on the New York Stock Exchange under the symbol LNKD in its upcoming initial public offering. LinkedIn plans to sell 7.84 million shares at an estimated price range of $32 to $35 a share. LinkedIn was founded in 2003 and has more than 100 million members, operates in more than 200 countries. Morgan Stanley, BofA Merrill Lynch, and J.P. Morgan are the lead underwriters on the deal, which is expected to price during the week of May 16.
LinkedIn grew by 428 percent in Brazil last year, by 178 percent in Mexico, by 76 percent in India and 72 percent in France. Last year, LinkedIn posted net income of $3.4 million on revenue of $243.1 million.
The company's stockholders, including founder Reid Hoffman, Bain Capital, Goldman Sachs (GS) and publishing company McGraw-Hill (MHP), will also sell 3 million shares. It plans to use the funds for working capital for its business and possibly for acquisitions.
The company will sell shares at between $32 and $35 each, which will raise about $271m. This is the first time that LinkedIn is offering shares to the public.
Most of LinkedIn's revenue comes from fees it charges for recruiters and businesses that want expanded access to the website to help fill job openings. The company also sells online ads.
Reid Hoffman- 19.07 million Shares (each approx $35)- IPO price: $667.3 million
Jeffrey Weiner (CEO)- 2.3 million Shares (each approx $35)- IPO price: $81.3 million
Steven Sordello (CFO)- 907,327 Shares (each approx $35)- IPO price: $31.8 million
David Henke (SVP operations and engineering)- 336,458 Shares (each approx $35)- IPO price: $11.8 million
Dipchand Nishar (Deep) (SVP products and user experience)- 336,458 Shares (each approx $35)- IPO price: $11.8 million
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