Sequoia, Greylock, Bessemer To Stay Put In LinkedIn IPO
By Zoran Basich
Wall Street Journal
May 9, 2011, 6:41 PM ET
So who’s selling shares in LinkedIn’s IPO? Not its top three venture investors.
Monday’s amended SEC filing by the company revealed its estimated IPO terms – the business networking company plans to sell 7.8 million shares, 4.8 million of them by the company itself, at $32 to $35 per share. That would bring in $274.4 million at the upper end of the price range, with $169 million going to the company and $105.4 million going to shareholders.
LinkedIn founder Reid Hoffman, now a Greylock Partners partner, will see a nice little windfall by selling off 115,335 shares – just over $4 million. Hoffman will still hold more than 20% of the company and remain its largest shareholder, with a stake worth $663.3 million. That assumes the IPO prices at the upper end of its range, which would give the company a market cap of $3.31 billion.
Sequoia Capital, Greylock Partners and Bessemer Venture Partners won’t be seeing any of the windfall, though – at least not yet. LinkedIn’s top VC backers are not selling shares in the offering, banking on the stock to rise after its debut.
Sequoia will own 17.8% of the company after its shares get diluted, making its stake worth a potential $589.4 million or so at the upper-range market cap. Greylock’s 14.9% stake would be valued at $491.7 million, and Bessemer’s 4.8% stake would be worth about $160.2 million.
Bain Capital, though, is getting a bite of cake while saving the rest for later. The firm, which owns 4.8% of company shares going into the IPO, is unloading 653,880 shares, which will bring it $22.9 million if the IPO prices at the upper-end $35 figure. It also still leaves it with a 3.9% stake, worth $129.7 million.
Among other shareholders, Goldman Sachs owns less than 1% of LinkedIn and is selling all 871,840 of its shares, which will bring it $30.5 million if the IPO prices at the upper-end $35 figure.
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