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| LinkedIn shares sold for $45 at top of range | LinkedIn shares sold for $45 at top of range |
| (about 7 hours later) | |
| Shares in business networking website LinkedIn have been priced at $45 each, the top of their indicated range. | Shares in business networking website LinkedIn have been priced at $45 each, the top of their indicated range. |
| On Wednesday, the price range for the initial public offering of the company was lifted from $32 to $35 a share to a range of $42 to $45. | On Wednesday, the price range for the initial public offering of the company was lifted from $32 to $35 a share to a range of $42 to $45. |
| LinkedIn has sold 7.84 million shares, raising $352.8m (£218.3m) and valuing the company at $4.25bn. | LinkedIn has sold 7.84 million shares, raising $352.8m (£218.3m) and valuing the company at $4.25bn. |
| The shares are due to begin trading on the New York Stock Exchange on Thursday. | The shares are due to begin trading on the New York Stock Exchange on Thursday. |
| $4bn looks a very fancy price for a company with revenues last year of $243m and profits of $15.4m. | |
| That looks modest compared with the figures of $50bn and more being bandied around for Facebook's valuation. | |
| Both price tags will look dumb to those sceptics who see Facebook as an ephemeral craze for people with poor social skills and LinkedIn as little more than a glorified Rolodex | |
| It is the biggest technology flotation since the tech bubble burst in 2000 and some analysts are suggesting that its pricing suggests a new bubble is inflating. | |
| But others argue that there is great value to connecting people online and that LinkedIn provides great opportunities for companies to find new customers and staff. | |
| LinkedIn is the first US social network site to get a share listing, and is seen as a test of appetite for them. | LinkedIn is the first US social network site to get a share listing, and is seen as a test of appetite for them. |
| Facebook and Twitter are both expected to seek stock market listings in the next few years. | Facebook and Twitter are both expected to seek stock market listings in the next few years. |
| The new price range for LinkedIn values it at about 17 times its earnings from 2010. | |
| That is about half of the valuation multiple being given to Facebook, but considerably higher than more mature internet stocks that already have stock market listings. | |
| Google, which went public in 2004, has a market value of about six times its annual revenues. |