LinkedIn files for Initial Public Offering
LinkedIn, one of the world’s largest social networking company connecting over 80 million professionals, announces $175 million IPO.
The offering indicates the upcoming web-related stake in the world market economy.
As per the sources, investors are carefully monitoring the financial reports divulged by the LinkedIn Corp, in their IPO filing details.
The financial details were filed with the U.S. Securities and Exchange Commission.
"It's only recently that their earnings have turned positive," said Jay Ritter, finance lecturer at the University of Florida.
The escalating revenues
Though LinkedIn Corp confirmed seven quarterly losses, it also explained successively escalating revenues, during these quarters.
The company asserts heavy losses, up to $2.9 million during March 2009, but the last two quarters brought profits to the company, as per the reports.
LinkedIn is facing a decline in the growth of the revenue rate. As per the Generally Accepted Accounting Principals (GAAP) standards and regulations, the company states that it does not anticipate any gains in 2011.
As in 2011, the company is planning investments for its future growth.
As for now, it seems that investors around the globe are showing their interests in the LinkedIn IPO. Among the banks, JPMorgan, Morgan Stanley, and Bank of America are involved the LinkedIn offering.
Privately held shares are traded more on the market buzz, rather than its financial facts. David Menlow, IPOfinancial.com President said, "You're talking about the secondary markets, which are like the Wild West.”
He added, “Who's to say what they are really worth?"
LinkedIn, the professional web-networking leader
LinkedIn, launched in 2003 is promoted by a former PayPal executive, Reid Hoffman.
LinkedIn private investors include Google, Apple Inc, Cisco Systems Inc, Goldman Sachs, Greylock Partners, Bessemer Venture Partners, Group Inc., Oracle Corp, and Sequoia Capital. The company obtained $103 million of investment by January 2011.