LinkedIn IPO, Valuation Reached $4.5 Billion

LinkedIn, social networking site for professionals, will be recorded in the New York Stock Exchange (NYSE) under LNKD. There will be 7.84 million new shares at a price of U.S. $ 45 (nearly IDR385 thousand) per share. LinkedIn valuation will reach U.S. $ 4.5 billion.

LinkedIn decision to enter the stock market is the courageous decision, given the social networking business itself is not a business that is easy to guess or 'fudge by traders, especially the business model and possible future. Social networking does not necessarily have the same image in investors.

LinkedIn was founded by Reid Hoffman, who had become employees of PayPal and Apple, in 2003, LinkedIn managed to increase from 2 million users in 2004 to more than 100 million today. Revenues reached U.S. $ 243 million in 2010. LinkedIn Investor is Sequoia Partners, Greylock Partners and Bessemer Venture Partners, which has 37.5% of the total shares and all are not sold in this IPO. This means that only 62.5% stake in LinkedIn are offered in this IPO.