MOUNTAIN VIEW, Calif. (AP) -- With its shares trading around all-time highs, online professional networking service LinkedIn announced a $1 billion stock offering Tuesday.
LinkedIn said it plans to sell Class A shares to increase its financial flexibility and strengthen its balance sheet. It intends to use the money for general corporate purposes like expanding its product development and sales organizations, expanding its international businesses, and could use some of the proceeds for acquisitions or investments.
The underwriters of the sale will have the option to buy an additional $150 million worth of shares.
LinkedIn Corp. shares have more than doubled in value over the last year, and they reached an all-time high of $247.98 on Aug. 26. The shares rose $6.09, or 2.5 percent, to $246.13 on Tuesday and lost $4.43 to $241.70 in aftermarket trading.
The company had 93.9 million shares of Class A stock as of July 25.