The Mountain View , California-based company sold 7.84 million shares at $45 each, according to a statement released on Wednesday. At that price, the company has a market value of $4.25 billion, or 11.3 times projected annual sales, compared with 13.8 for Facebook and 8.3 for Salesforce.com (CRM). The company raised the proposed range on May 17, to $42 to $45 each from $32 to $35.
Members of LinkedIn use the site to search for jobs, recruit employees and find industry experts. While users can create personal profiles for free, paid subscriptions were introduced in 2005, giving recruiters more access to candidates and providing professionals ways to communicate with one another. The company gets 70% of revenue from business subscriptions, a model similar to Salesforce.com.
Proceeds from the IPO will be used to fund existing operations and expand the business, including possibly buying other companies or technologies, LinkedIn said in a filing with the US securities and exchange commission.