Doug Chu is Senior Vice President and Head of the Silicon Valley Office and Western Region for NYSE Euronext’s...
LinkedIn’s stock opened for public trading Thursday morning on the New York Stock Exchange. The stock, pricing Wednesday night at $45.00—the top of the increased filed range of $42.00 to $45.00—has performed well today, opening at a $83.00, an 84% premium to the initial offer price. This was after the company increased the pricing range by 30%, the largest increase since the tech IPO boom of 1999-2000.
The stock closed today at $94.25, a 109% first day increase and the highest for any U.S. based stock since 2006.
In the offering the company raised $352.8mm and had a market cap at pricing of $4.25B, making it the largest domestic internet IPO by market cap since Google’s IPO in 2004. The deal brings the YTD proceeds raised by internet companies to levels that have not been seen for over a decade. Other large internet deals for 2011 include Demand Media (NYSE:DMD), previously the largest domestic internet IPO since Google, and Renren, Inc. (NYSE:RENN), commonly known as the “Facebook” of China.
LinkedIn's pricing and performance serves as an important barometer for the market's appetite for the potential IPOs from other social media giants to come.
It also represents the new reality of high-growth technology companies increasingly listing their stocks on NYSE (Reuters Insider, among others, recently published a story on this) Year-to-date, NYSE has listed 6 of 8 (75%) of internet IPOs, raising 93% of the total proceeds in the sector. It expects this trend to continue, with both The Active Network, and Pandora Media planning to IPO on NYSE in the next few months.