Join        Login             Stock Quote

Facebook Sets IPO Price Range Of $28-$35, Valued At About $75 Bln

 May 03, 2012 07:41 PM

(By Mani) Facebook, Inc.  has set a price range for its impending initial public offering in the range of $28 to $35, which would help the social networking giant raise as much as $11.8 billion, valuing the company at around $75 billion.

Facebook increased the IPO size to $13.6 billion from its previous $5 billion and has roughly 2.14 billion outstanding shares. If its IPO prices at the top of the range ($35), the company would be valued at about $75 billion. Earlier, the Wall Street Journal said the initial price is expected to value the company at about $85 billion to $95 billion.

Facebook, founded by Mark Zuckerberg, is the largest internet IPO since Google raised $1.9 billion at a valuation of $23 billion in 2004.

[Related -Facebook Inc (FB) Q4 Earnings Preview: What To Watch?]

In a regulatory filing, California-based Facebook said it would issue about 337.42 million shares, of which 180 million will be Class A shares, while the remaining will be offered by selling stockholders.

Meanwhile, the indicated price range is lower than the $44 price on the private-company exchange SharesPost. At that price, the implied valuation stands at $102.6 billion.

However, the $28 to $35 is only the preliminary range and is subject to change depending on the demand of investors. The company is expected to conduct a roadshow for institutional investors on Monday. The offering is being led by Morgan Stanley (NYSE:MS), JPMorgan (NYSE:JPM) and Goldman Sachs (NYSE:GS).

[Related -How bank reserves make the gap between deposits and loans disappear]

Within two weeks, Facebook could reveal final pricing and start trading its shares on the Nasdaq Stock Market, under the symbol FB. Upon listing, it would be worth more than technology giant Hewlett-Packard (NYSE:HPQ) and just behind Amazon.com, Inc. (NASDAQ:AMZN).

Facebook is offering two classes of shares – Class A and Class B. The rights of the holders of Class A common stock and Class B common stock are identical, except voting and conversion rights.

Each share of Class A common stock is entitled to one vote, while each share of Class B common stock is entitled to ten votes and is convertible at any time into one share of Class A common stock.

The holders of outstanding shares of Class B common stock will hold about 96.3 percent of the voting power of the outstanding capital stock following this offering.

Next Page >>12
iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageOld Bank's New Breakout has Big Rally Potential

One of my favorite things to see in a long candidate is a pattern of beating Wall Street's earnings read on...

article imageIs The Stock Market's 5-Year Return A Useful Proxy For Valuation?

Tobin’s Q, a market-valuation metric, is back in the news, in part thanks to a widely read Bloomberg read on...

article image4 Dogs To Sell Immediately

Despite the chorus of analysts and investors calling for the long-awaited correction, the market is showing read on...

article imageThe Fed's Magical Mystery Tour

What's going on at the Fed? Notorious dove, Charles Evans of the Chicago Fed, gave a speech in read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.