Expectations of another tech bubble have risen with LinkedIn set for the largest market flotation since the dotcom boom of 2000.
The value of the site has soared by 30% ahead of its IPO on Thursday, US time. Shared are expected to sell for between $42 and $45. This will give the company a valuation of $4.3 billion.
Industry observers predict that LinkedIn’s IPO will pave the way for other tech companies, including Facebook, to go public, significantly hiking the valuations of leading start-ups in the sector.
Big four banks in credit rating cut
The credit ratings of Australia’s four main banks have been cut by ratings agency Moody’s, the first such downgrade in a decade.
Moody’s has knocked the Aa1 rating previously held by ANZ, NAB, CommBank and Westpac to an Aa2 rating, citing the banks’ sensitivity to wholesale funding. It’s likely that any further downgrade would significantly impact borrowers in Australia.
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WA budget set to bypass businesses
Today’s West Australian budget is not expected to provide any extra comfort for small businesses, with WA Premier Colin Barnett saying that it will focus heavily on social issues.
The budget is expected to include a 7% rise in water and electricity charges, incentives to bolster the property market and a $200 boost for the not-for-profit sector.
The Dow Jones Industrial Average was up 80.60 points to 12,560.18. The Australian dollar climbed to 106.24 US cents.