Home Business NewsTech News LinkedIn to sell $1bn-worth of stock

LinkedIn to sell $1bn-worth of stock

by LLB Editor
4th Sep 13 9:47 am

Networking site LinkedIn is set to issue $1bn (£643.4m) in new shares, after its share price surged fivefold since its 2011 IPO.

The new offering would sell close to 4.2 million shares which is expected to give LinkedIn a total of 116 million shares outstanding of Class A and Class B stock

LinkedIn plans to use the funds for general expenditure, international expansion and product development.

“The principal purposes of this offering are to increase our financial flexibility and to further strengthen our balance sheet,” the professional social media site said in its explanation to the US Securities and Exchange Commission.

However, the company made it clear that it does not need the additional money to fund its current operations.

“Based on our current cash and cash equivalents balance together with cash generated from operations, we do not expect that we will have to utilise any of the net proceeds to us of this offering to fund our operations during the next 12 months.”

The sale will be underwritten by JP Morgan, Morgan Stanley, Goldman Sachs, Bank of America Merrill Lynch and specialist investment bank Allen & Co.

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