Shares hit 173% peak in first day trade
Shares of networking site for professionals LinkedIn rose to a high of 173% and valuing the company at $11.6bn at the highest in the first day trade on the New York Stock Exchange (NYSE).
At one point of time, the shares were trading at $122.69, up 173% on the $45 IPO price. By the close of trading, shares were at $94.25, more than 109% above the IPO price.
A few days before the company went for the IPO, it was valued at just over $3bn. Now, it is worth nearly $9bn, and touched $11.6bn at the peak, nearly quadruple its value.
LinkedIn, with 1,288 employees and 102 million registered members, has stated in the past that it does not expect to be profitable in 2011.
LinkedIn is the first US social networking company to go public. Many other Web-based companies plan to go public this year. Facebook, Groupon and Twitter are expected to go public in near future.
Morgan Stanley, Bank of America, Merrill Lynch and JPMorgan were the underwriters for the IPO.