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LinkedIn raises price range for share listing

image captionLinkedIn in the first US social networking site to float

Demand for shares in the business networking website LinkedIn has been so strong that the company has raised the price range for Thursday's initial public offering (IPO).

It has gone up from a range of $32 to $35 a share to a range of $42 to $45.

That range values the company at at least $4bn, although only about $200m of shares are being sold.

LinkedIn is the first US social network site to get a share listing, and is seen as a test of appetite for them.

Facebook and Twitter are both expected to seek stock market listings in the next few years.

The new price range for LinkedIn values it at about 17 times its total sales from 2010.

That is about half of the valuation multiple being given to Facebook, but considerably higher than more mature internet stocks that already have stock market listings.

Google, which went public in 2004, has a market value of about six times its annual revenues.

Final pricing for LinkedIn is expected after the New York market closes on Wednesday and trading is due to start on Thursday.

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