Social networking website LinkedIn is offering $1 billion in Class A stock, the company announced on September 3.
The company filed with the U.S. Securities and Exchange Commission for the stock offering.
The announcement also included the company granting underwriters an option to purchase up to an additional $150 million of its shares.
The main reasons for the public offering is to increase the company’s financial flexibility and further strengthen its balance sheet, reports StreetInsider.com.
“LinkedIn intends to use the net proceeds of the offering primarily for general corporate purposes, including working capital, expansion of its product development and field sales organizations, international expansion, general administrative matters and for capital expenditures, including infrastructure,” according to the website. “It may also use a portion of the net proceeds from the offering for potential strategic acquisitions of, or investments in, complementary businesses, technologies or other assets.”
The company, with $873 million in cash and investments at the end of quarter 2--and no debt--is already looking pretty strong, according to Seeking Alpha.
“Is the company looking to make a big acquisition?” it posits.
