LinkedIn files for IPO

LinkedIn is set to float on the New York Stock Exchange as investors’ enthusiasm for social networking sites grows.

LinkedIn

The professional networking site has filed registration documents to raise up to $175m (£109m) in an initial public offering.

LinkedIn says it has more than 90 million registered users, some of which pay for its premium service which can cost up to £63 a month. The company also makes revenue from recruitment solutions and through advertising.

Earlier this week, LinkedIn announced it is to enhance its advertising technology to offer marketers more ways to produce targeted ads based on users’ age, location, job title, location and seniority.

According to its Securities and Exchange Commission filing, LinkedIn reported net revenue of $161.4m (£100.93m) in the first nine months of 2010 and $1.85m (£1.16m) profit in the same period.

LinkedIn has raised almost $100m (£62.5m) in numerous venture capital rounds since its launch in 2002, with Goldman Sachs amongst its investors.

Earlier this month Goldman Sachs announced it was to raise $1.5bn for Facebook through private placement of shares for its top clients.

Although Goldman Sachs had to withdraw its offer from US clients for fear of breaching security laws, the fundraising plan is already said to be up to three times over-subscribed.

Group buying site Groupon, which recently snubbed a $6bn (£3.8bn) takeover offer from Google, is also widely speculated to go public later this year.

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