NEW YORK (Dow Jones)--LinkedIn Corp.'s (LNKD) share price jumped as much as 7.2%, even after the company added more equity to the market, as investors still appear interested in purchasing the social-networking company despite concerns about the stock's valuation.
About eight million LinkedIn shares came to market Thursday, with 1.3 million coming from the company and 6.7 million from insiders and early holders. The secondary offering, which followed the company's successful debut in May, roughly doubled the company's float, or the number of its shares available for trading.
The supply of LinkedIn shares is set to continue rising as lock-up agreements requiring insiders to hold their shares are set to expire in coming months.
The company made $92.3 million from the sale of its 1.3 million shares. LinkedIn has said the stock sale was designed to bolster its "capitalization and financial flexibility" as well as increase its public float.
LinkedIn's shares have had a wild ride since its initial public offering priced at $45. The stock more than doubled on its first day and closed as high as $109.97 in mid-July before falling to the low $70s in August amid broad market turmoil.
No comments:
Post a Comment