Expected price has jumped $10 to $42-45.
http://online.wsj.com/article/BT-CO-...17-711715.html
Professional networking site LinkedIn Corp. on Tuesday raised its expected price range for its initial public offering this week by a hefty $10, a strong indication that demand is running high for the new stock.
The company, which is preparing to set the IPO price Wednesday night and begin trading on the New York Stock Exchange under the symbol LNKD on Thursday, had originally set out to sell 7.84 million shares at $32 to $35 apiece. In an updated filing with the Securities and Exchange Commission Tuesday morning, the company set the range at $42 to $45.
While companies sometimes raise their price ranges by as much as $3 to $4, a $10 increase is uncommon. The last time something similar happened just before a pricing was at the height of the dot-com market in 2000, when Internet network equipment company ArrowPoint Communications Inc. raised its price range by $15 a share in March of that year, according to data from Dealogic. ArrowPoint ended up pricing even higher than its revised range, then was acquired a few months later by Cisco Systems Inc. (CSCO)
LinkedIn's new price range is a clear sign that investors are jockeying for shares ahead of the offering and are willing to pay far more than the company was originally asking in order to get a piece of the IPO. The deal could still price higher than its raised range by the time the dust settles Wednesday evening.
The company, which is preparing to set the IPO price Wednesday night and begin trading on the New York Stock Exchange under the symbol LNKD on Thursday, had originally set out to sell 7.84 million shares at $32 to $35 apiece. In an updated filing with the Securities and Exchange Commission Tuesday morning, the company set the range at $42 to $45.
While companies sometimes raise their price ranges by as much as $3 to $4, a $10 increase is uncommon. The last time something similar happened just before a pricing was at the height of the dot-com market in 2000, when Internet network equipment company ArrowPoint Communications Inc. raised its price range by $15 a share in March of that year, according to data from Dealogic. ArrowPoint ended up pricing even higher than its revised range, then was acquired a few months later by Cisco Systems Inc. (CSCO)
LinkedIn's new price range is a clear sign that investors are jockeying for shares ahead of the offering and are willing to pay far more than the company was originally asking in order to get a piece of the IPO. The deal could still price higher than its raised range by the time the dust settles Wednesday evening.
I lost a few bucks on that one.
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