LinkedIn IPO, What Happened?!

LinkedIn yesterday had their initial public offering with shares initially being sold by LinkedIn shareholders to the open market for around $45 USD each.

Morgan Stanley and Bank of America were LinkedIn’s underwriters whom managed the deal. It seems they have underpriced the stock considerably as LinkedIn shares are now trading above $80 USD a share.

Morgan Stanley and Bank of America would have sold LinkedIn stock to their best clients at $45 a share, and a day later they would be laughing all the way to the bank as the LinkedIn share price almost doubled overnight.

At one point LinkedIn share were trading as high as $122 USD a share and any investors that sold out then would probably consider this one of the best short term investments they ever made.

If you were a LinkedIn shareholder whom sold your stock for $45 a share – you would obviously feel, screwed over.

Many of the LinkedIn Senior Management would be in this position.

This is not the first time a tech IPO has resulted in such a discrepancy between IPO share price and market price shortly after. But it does how much the market does still love tech stocks.

It will certainly be interesting to see how LinkedIn stock continues to trade. You can follow LinkedIn Corporation on the NYSE with ticker LNKD