LinkedIn Hikes IPO Price Range by 30 Percent
Professional networking site LinkedIn Corp. raised its price range for its initial public offering this week by 30 percent, a strong indication that demand is running high for the new stock.
The company, which is set to price Wednesday night and begin trading on the New York Stock Exchange under the symbol LNKD on Thursday, had originally set out to sell 7.84 million shares at $32 to $35 apiece. In an updated filing with the Securities and Exchange Commission Tuesday morning, the company set the range at $42 to $45.
While companies sometimes raise their price ranges by as much as $3 to $4, a $10 increase is very uncommon. It’s a clear sign that investors are jockeying for shares ahead of the offering and are willing to pay far more than the company was originally asking in order to get a piece of the IPO.