With the LinkedIn ($LNKD) IPO occurring today – I wanted to give some thoughts. Here they are:
LinkedIn ($LNKD) IPOed today closing at $94.25 for a market capitalisation of $8.9bn – at 31 December 2010 $LNKD had $92m of cash and no debt – so we will give $LNKD an Enterprise Value (EV) of $9.0bn.
Big result. On SecondMarket (private secondary market) LinkedIn shares had traded at $35 a share in March 2011. The IPO was priced at $45 a share. End of first day $94 a share. The IPO bankers – Morgan Stanley, Merrill Lynch and Allen & Company – may have some questions to answer about pricing. A lot of interest – a good IPO for the technology/internet sectors.
