Popular professional networking site LinkedIn is estimating its initial public offering will be larger than it originally projected, Bloomberg reports.
Based in Mountain View, California, LinkedIn intends to sell about $315.6 million worth of shares as part of its effort to widen the scope of business interests, regulatory paperwork filed on Monday indicates. The original estimate from this past January, when whispers about the flotation first surfaced, was that the company would sell as much as $175 million worth of stock.
The company will sell 7.84 million shares of Class A stock for as much as $35 apiece, according to the company. LinkedIn also reserved the right to sell 1.18 million additional shares via an over-allotment.
LinkedIn also will sell Class B shares, which represent 99.1 percent of votes once the IPO occurs. Class B shares hold 10-times as much voting power as do Class A shares.
Ongoing operations and widening the business are two high objectives that IPO funds will be used for, according to the company. Still on the table is the chance to purchase additional companies and technologies.
Once the flotation completes, LinkedIn will have 94.5 million outstanding shares. At the minimum price of $32 per share, that will net the company more than $3 billion.
When flotation speculation first began earlier this year, a secondary exchange firm was auctioning LinkedIn shares at $32 per share. Those prices would project the company’s value at nearly $3 billion.
When 2010 closed, LinkedIn employed more than 1,000 people. Its membership, social networkers who established profiles, exceeded 90 million dispersed among at least 200 countries. Those figures make it less than one-fifth the size of Facebook, which has at least 500 million registered users.
LinkedIn users have many tools available via the networking site. They can search for jobs, recruit employees and locate industry experts. While the service is free, LinkedIn opened paid subscriptions in 2005, which allowed recruiters increased access to candidates to fill positions during job hunts.
The enhanced service also gives professionals methods of corresponding with each other.
Another way that LinkedIn makes money is by selling advertising space on the site. In 2010, sales at least doubled to $243 million. During the same period, net income totaled $15.4 million, $3.43 million of which was directed to shareholders.
Sales at LinkedIn at least doubled during the first quarter of 2011 to $93.9 million