The LinkedIn.com IPO priced at $45 this afternoon, with a valuation of over $4 billion. Yes, that's billion with a "B". The company was founded in 2003, so the IPO was eight years in the making. Ironically, the recent recession has really powered the growth of the company, making this professional networking software more important than ever to today's worker.
By the end of the roadshow, the demand was so strong that the bankers were able to raise the price range by $10 per share, from 32 to 35 per share to $42 to 45 per share, an increase of 30 percent.
Clearly, LinkedIn is benefitting from the dearth of IPO's in the social networking space. There is a huge pent up demand to participate in and benefit from the growth of these companies, but no publicly available product.
The sad thing is that the public did not have the opportunity to buy earlier, and participate in this appreciation. In the 1990's, LinkedIn would have gone public years ago, and a valuation of a few 100 million dollars.