With business networking site LinkedIn going public on May 19, investors have claimed that the company's plan to sell in the range of $43 - $45 per share is overpriced.
The company raised the price from the previous $32 - $35 range and this rise could result in raising as much as $352.8 million if all stocks were to be sold at $45.
Eric Jackson, managing member at hedge fund Ironefire Capital, stated that he wouldn't touch the stock, not at $45 or at $43 but maybe at $25 a share, according to an article from Reuters news.
In January when LinkedIn first announced its intention to go public, the company's value was at $2.51 billion. With the IPO, it would be valued at atleast $4 billion.
LinkedIn's debut in the market is a foreshadow to what social networking sites may result in after an IPO. Considered to be the first major social networking site going public, it will serve as a gauge to investing companies for future social networking site IPO prospect investments such as Facebook and Twitter.