LinkedIn raises $88 million in stock sale

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LinkedIn has raised $88 million in a stock sale of 1.27 million shares.

Investors and insiders also cashed out 7.5 million shares in an offering completed late Wednesday.

This marked the first time since the company’s blockbuster initial public offering in May that insiders were permitted to sell shares. The shares were sold at $71 each.

LinkedIn shares rose 5% to $74.92 Thursday even after the professional networking company added some 8 million shares to the market, showing that investors still have a strong appetite for social media.

Roughly 9 million shares were sold in the IPO, so the secondary offering nearly doubled the volume of shares available on the market.

The amount raised -- $88 million after more than $2 million in fees -- fell short of the $100 million the company was targeting.

LinkedIn said it planned to use the money to fuel expansion of its offerings around the globe. The company had a loss in the third quarter, its first as a public company, even as its revenue doubled, raising concerns that it’s spending too heavily on growth.

LinkedIn went public in May in the biggest IPO for an Internet company since Google’s in 2004. The stock more than doubled on its first day of trading.

The IPO market is coming to life after months of economic turmoil and market volatility have shelved plans at many companies. Today, Angie’s List made its public debut and Yelp filed for an IPO.

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-- Jessica Guynn