Professional social networking site LinkedIn will offer 7.84m in shares in its IPO, valuing it at US$3bn at the high end of its offering price range.
According to Reuters, LinkedIn’s shares are valued at US$32-US$35 a share. After fees and taxes, the company expects to receive net proceeds of US$146.6m.
The company is offering 4.8m shares and the rest by certain of its stockholders.
LinkedIn became profitable in 2010, with a net income of US$10.1m in the first nine months of that year.
Its revenue for the first quarter of 2011 grew by 110pc from the same period the previous year to US$93.9m.
LinkedIn is one of the first social networking companies to start the IPO process.
A Chinese social networking site called Renren Inc experienced a successful IPO, paving the way for more social media sites to follow.
With many social media sites experiencing extremely high valuations in the run up to their own IPOs, the spotlight will be put on LinkedIn to see how the market will react to its IPO.
