THIS IS IT! It’s IPO Time. Facebook Sets Its Price, However Doubts Abound.

Facebook prepares to become a listed company

Facebook released some important details regarding them being a publicly listed company this week (Thursday).

They announced on Thursday that their Initial Public Offering (IPO) would be priced somewhere between US$28 to US$35 per share, and they are attempting to sell 337.4 million shares, which at the higher end of the price range, would allow them to raise US$11.8 billion.

Mark Zuckerberg - CEO Facebook

Mark Zuckerberg - CEO Facebook (The prospectus video)

The company is expected to start its road show on Monday.

In terms of the offering Bloomberg Businessweek reports

Facebook is offering 180 million shares, while existing owners such as Accel Partners and Digital Sky Technologies are offering 157.4 million, according to the filing. Zuckerberg is offering 30.2 million of his 533.8 million shares. The majority of his net proceeds will be used to pay taxes associated with exercising a stock option.

Doubts Abound

However in a well written, well researched article, the Financial Times presents some views on its pricing, strategy, and valuation. Read it here (Lex in depth: Facebook). It also includes a valuation calculator to make your own assessment.

Facebook’s IPO has been the most anticipated, most discussed, and most speculated company since its inception, largely because of the massive earning potential it has and the amazing possibilities available to connect people. If only I could buy some of those shares from Jamaica.

What are your views on the Facebook IPO?

 

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