Following the news on Sept. 3, 2013 that LinkedIn (NYSE:LNKD) would issue $1 billion worth of new, class A common stock to the public, it has decided to increase the offering to 5,381,166 shares, from 4,165,972, LinkedIn announced yesterday. The company also said it's priced the public offering at $223 per share, bringing the total value to approximately $1.2 billion, according to LinkedIn's press release.
The stock closed at $238.93 on Sept. 4, 2013.
Including the additional shares, LinkedIn will have 98,948,071 shares of class A common stock outstanding, along with 18,336,655 of class B shares, according to its Sept. 3, 2013 SEC filing. The underwriters of the offering have a 30-day option to purchase up to 807,174 additional shares, LinkedIn said.
According to the company's announcement on Sept 3, 2013, proceeds from the stock offering will be used to gain "financial flexibility and to further strengthen its balance sheet." LinkedIn added it may also use some of the capital raised from the offering for "potential strategic acquisitions of, or investments in, complementary businesses, technologies or other assets."
The enhanced stock offering is expected to close on Sept. 10, 2013.
Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool recommends LinkedIn. The Motley Fool owns shares of LinkedIn. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.