SAN FRANCISCO (Reuters) - LinkedIn Corp said on Tuesday it will sell an additional $1 billion (642.5 million pounds) of its Class A common stock as the Internet company moves to bolster product development and perhaps make more acquisitions.
LinkedIn shares, which have more than doubled this year, were down 2.3 percent at $240.49 in afterhours trading on Tuesday following its announcement about the secondary share offering.
LinkedIn, which had roughly $900 million in cash and short-term securities at the end of June, did not specify when the secondary offering would take place.
The company said it planned to use the proceeds for general corporate purposes, including further expansion of its product development and international expansion.
“We may also use a portion of the net proceeds for the acquisition of, or investment in, technologies, solutions or businesses that complement our business, although we have no present commitments or agreements to enter into any acquisitions or investments,” LinkedIn said.
The offering would sell roughly 4.2 million shares, giving LinkedIn a total of roughly 116 million shares outstanding of Class A and Class B stock, according to a prospectus the company filed with the Securities and Exchange Commission on Tuesday.
(The story corrects day of the week in first paragraph)
Reporting by Alexei Oreskovic. Editing by Andre Grenon