Private Shares

SecondMarket Pulls Back The Curtain: LinkedIn Started at $14.50

Today marks a big milestone for New York based SecondMarket. The LinkedIn IPO makes it the first company that traded privately through SecondMarket to go public.

That allowed SecondMarket to reveal some of the data it has long kept secret, such as the price and volume of trades that took place around LinkedIn.

“This is very good news for LinkedIn and a much-needed boost for the IPO market. It’s great to see a company go public when it makes strategic sense for the business, and we’re pleased that trading on SecondMarket helped contribute to a successful IPO. This IPO also underscores the point that even for an exciting, innovative company like LinkedIn, it can take nearly a decade before the time is right to go public.”

The history looks like this:

April 2010 – $14.50/share
May 2010 – $17
June 2010 – $17
July 2010 – $21.50
August 2010 – $23
September 2010 – $25
October 2010 – $23
November 2010 – $25
December 2010 – $25
January 2011 – $34
February 2011 – $35
March 2011 – $35

Liz Gannes over at All Thing D has done some great reporting on this. She writes that the real test of the secondary markets will be where the price settles after the IPO pop wears off. That isn’t necessarily true. Few people would argue that the secondary markets, which lack essential information, are pricing companies accurately. The value of the secondary markets is to provide much needed liquidity to get a company, especially a ten year veteran like LinkedIn, to the finish line. SecondMarket buyers were well rewarded today for that gamble.

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