Linked In IPO-adds raise up to $4B affair

The social network for business professionals yesterday priced its initial public offering at $45 a share, the high end of earlier estimates, as it looks to raise more than $350 million and realize a market valuation of more than $4 billion, or more than 17 times its 2010 revenue.

The price is $10 per share higher than the company first considered, amid growing investor interest in the tech sector, especially in the social-networking space.
"You kind of look at the group of new media, next-generation Internet companies -- Facebook, Zynga, Twitter, Groupon -- and LinkedIn is the first to come to market for that group," said Matt Therian, a research analyst with Renaissance Capital.

As such, Wall Street is balancing the frenzy that accompanies the biggest tech offering since Google in 2004 with the reality that LinkedIn disclosed in filings that it doesn't expect to turn a profit this year.

Also, at 17 times its revenue, the company is asking for a multiple higher than a number of tech stalwarts, including Google, which trades at six times revenue.

Today's IPO won't just be a buying opportunity for the social network bulls, however. It will also be a chance for early investors to cash out.

Goldman Sachs isn't on the list of underwriters, but it's among the registered sellers and will unload its entire stake of 871,840 shares.

Founder Reid Hoffman will sell 115,000 shares, which could fetch $5.2 million, leaving him with about $850 million worth of stock.