LinkedIn, the largest professional-networking website, more than doubled in the first day of trading on Thursday after its initial public offering.
The stock surged as much as $77.70 to $122.70 and closed at $94.25 on the NYSE, trading under the symbol LNKD.
LinkedIn sold 7.84 million shares at $45 each, the company said in a statement on Wednesday.
At $100 a share, LinkedIn would be worth about $9.45 billion, or 25 times 2011 revenue, assuming first-quarter sales are matched over the next three quarters. Facebook, the world’s largest social-networking site, would be valued around $100 billion using the same multiple.
LinkedIn’s performance is reminiscent of some of the hottest stocks in the dot-com boom. Yahoo! Inc. rose 154% on its first trading day in 1996, a year after Netscape Communications more than doubled in its debut. In other Internet-company debuts of recent years, Google rose 18% in its 2004 IPO, and eBay surged 163% in its 1998 IPO.
LinkedIn’s gains bode well for other social-networking companies, including Facebook, that are expected to sell shares. They also brighten prospects for the venture capital industry, which lost money over the past 10 years amid a dearth of IPOs.
Qihoo 360 Technology, the Beijing-based provider of computer anti-virus products and Web browsers, had the biggest first-day gain among U.S. IPOs this year, surging 134% the day after raising $175.6 million in its offering.
Morgan Stanley, Bank of America and J.P. Morgan Chase led the LinkedIn offering.
About 62% of the shares in the offering were being sold by LinkedIn, according to the prospectus. Other sellers include a venture capital affiliate of Bain Capital, McGraw-Hill, Goldman Sachs Group and Reid Hoffman, LinkedIn founder and chairman.
Venture capital backers Sequoia Capital, Greylock Partners and Bessemer Venture Partners aren’t selling shares, according to the filing.