Facebook will raise stock price, $100 billion at IPO
Facebook will raise the price of shares for
its initial public offering, possibly vaulting the world's most popular social
network to the first $100 billion valuation of a U.S. company at the time of its
A source told the Mercury News on Monday
that Facebook will increase the range of possible prices for the Menlo Park Company’s
initial shares, raising the maximum price to $38. At that price, Facebook would
be valued at more than $104 billion and bring in $12.8 billion. The largest U.S. IPO
valuation on record is shipping company UPS at $60 billion, according to
Facebook is expected to sell 337 million
shares to investors Thursday night, after the final price -- which could still
be higher -- is set. After initially saying in Securities and Exchange
Commission documents that it expected to charge $28 to $35 per share,
Facebook's new range will be $34 to $38, a person with knowledge of the move
said, verifying earlier reports.
The company will receive about 53 percent of
the total, before expenses, and the rest will go to existing shareholders such
as CEO and cofounder Mark Zuckerberg, who will sell 30.2 million shares to
cover taxes on other Facebook stock rewards. After the sale, a total of 2.74
billion shares will be held in Facebook, according to Bloomberg News
calculations that include restricted stock units and other shares Facebook does
not yet include in its statements.
Both Facebook's valuation and total take
would smash all records for Internet companies. Google holds both records for a
U.S. company: The Mountain View search
giant took home $1.9 billion at a valuation of $23 billion in 2004. Bloomberg
counts German Internet company T-Online's 2000 take of $2.8 billion as the
world record, but Facebook could take in more than four times that much.
Facebook would rank fifth all-time for total
amount raised in a U.S. IPO, according to Renaissance Capital; San
Francisco-based Visa holds that record at nearly $17.9 billion.
If all goes as expected, Facebook stock
would hit the open market Friday morning on the Nasdaq stock exchange under the
ticker symbol FB. Zuckerberg will reportedly ring the traditional opening bell
from the company's Peninsula headquarters.