Facebook to go public next year

gnbvi68 By gnbvi68, 3rd Jun 2013 | Follow this author | RSS Feed
Posted in Wikinut>Business>Investment

IT LOOKS like Facebook is preparing to go public next year when, according to new details revealed in a 100-page document sent to a select group of potential investors.

Facebook To Go Public Next Year

IT LOOKS like Facebook is preparing to go public next year when, according to new details revealed in a 100-page document sent to a select group of potential investors.

According to the private-placement document, Facebook, of Palo Alto, California, plans to increase the number of shareholders above 500 this year, forced to start disclose reams of financial information or go public in April 2012, the Wall Street Journal reported.

People familiar with the company said the social-networking company had fewer than 500 investors since late last year, including current and former employees, venture capital firms and private investors.

In 2008, Facebook told the Securities and Exchange Commission that the company has fewer than 499 holders in each of the five classes of stock.

The number of investors is very important because of 47 years of SEC regulations governing private companies.

Rules require firms with 500 or more shareholders of record in a certain type of stock to publicly disclose certain financial information.

This requirement is designed to protect investors from risking their money too. Crossing the threshold triggers the SEC filing requirements, even if the stock of a public company does not trade.

The company must register as a reporting company within 120 days after the end of the year in which the limit is breached. At that time, the company usually conclude that they might as well go public, listing their shares on the stock exchange and cashing in if the offer succeeded.

Facebook Chief Executive Mark Zuckerberg has said he is in no rush to go public, but those intentions have been contested since the company launched an equity offering as much as $ 1.5 billion through the {} earlier this week. Facebook current fiscal year ends on December 31, made the disclosure deadline the end of April 2012.

People familiar with the matter have said Facebook for benchmark assessment of a leading investment bank in preparation for a potential initial public offering next year and is interested in the assessment "round-number" of 50 billion dollars.

100-page document that includes the potential timetable for a Facebook public offering was circulated to potential investors in the 1.5 billion "special purpose vehicle" created by Goldman dollars.

Investment vehicle created by Goldman is intended to pool investors 'money' to create the legal effect of a single new shareholder in Facebook, since each special-purpose vehicle is considered as one shareholder of record.

The Company may exceed that limit during their financial year, but still avoid reporting requirements, provided that the total decline in 499 or fewer by the end of the company's fiscal year.


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author avatar gnbvi68
I am from India done my MBA in Pune I am really passionate about writing and an freelancer too.I am married and have two kids.

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author avatar Sivaramakrishnan A
4th Jun 2013 (#)

Facebook is already a public listed company for over a year! siva

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