Facebook IPO - Will it Be the Biggest in NASDAQ's History?
By AndriyR, 4th May 2012 | Follow this author
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Posted in WikinutBusinessInvestment
Facebook has submitted documents to the US Securities and Exchange Commission to apply for its IPO.
Initial Public Offering is a Huge Step Forward for Facebook
It finally happened - something the business world has been talking for many months is actually about to become a reality. The fastest growing social network service Facebook has submitted all documents needed to apply for the Initial Public Offering (IPO) to the US Securities and Exchange Commission (SEC). The IPO procedure will be coordinated by banks Morgan Stanley,J. P. Morgan, Goldman Sachs, BofA Merrill Lynch, Barclays Capital and Allen & Co. Facebook hopes to raise about $5 Billion USD which will leave Google’s IPO in 2004 with its $1.9 Billion USD far behind. Those are actually the most pessimistic expectations, as the opinions of financial pros differ. Renaissance Capital, for instance, foresees the possibility for Facebook to raise up to $10.6 Billion and more. In any case,this would make it the biggest initial public offering among all internet-based companies.
The date of the IPO is yet to be revealed, however it is already known that the share prices would be in the range of $28-35$, thus making the estimated value of the company itself $77-$96 Billion. Earlier, the estimated value of facebook was about $100 Billion. It is also known that the shares will be traded under the FB ticker. Mark Zuckerberg leaves himself 28% of shares that would open him the doors to the club of the wealthiest people on Earth.
It is interesting that 85% of Facebook profit comes from advertising, 12% from online games. Therefore, the prosperity of the company depends on 845,000,000 users who see those ads and spend their time playing games and communicating. Who knows, maybe some facebook users would make a fortune by investing into its shares. Let’s wait until the actual IPO really happens and see. The experts say that the interest on the trade floor is tremendous and the shares can easily double in price. Experts say, that even though the IPO date is not firmly set, it can be as soon as this month already. The usual platform, where hi-tech, computer and Internet companies’ shares are traded is NASDAQ. So, make sure to check on the FB ticker next time when you’ll be reading the quotes.
(based on materials of Wall Street Journal, Usa Today)
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