Facebook Could Opt for Smaller $5 Billion IPO - Reports
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Some more details on the expected Facebook (NYSE: FB) IPO filing are leaking out.
According to reports from IFR, the social media giant is expected to raise just $5 billion in its preliminary IPO prospectus which is due Wednesday morning. This is lower than the $10 billion number that was being discussed.
IFR said the smaller deal size "reflects a decision to start with a conservative base before deciding whether to increase."
As expected, Morgan Stanley (NYSE: MS) will lead the deal. Goldman Sachs (NYSE: GS), Bank of America Merrill Lynch (NYSE: BAC), Barclays Capital (NYSE: BCS) and JP Morgan (NYSE: JPM) will help with the underwriting.
The IPO process could be finalized by May, the report said.
A valuation wasn't mentioned, only that recent trading on private exchanges pointed to a $80 billion-plus valuation.
A ticker also wasn't mentioned, although recent reports suggest "FB" is the stock symbol. An exchange is also no known.
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According to reports from IFR, the social media giant is expected to raise just $5 billion in its preliminary IPO prospectus which is due Wednesday morning. This is lower than the $10 billion number that was being discussed.
IFR said the smaller deal size "reflects a decision to start with a conservative base before deciding whether to increase."
As expected, Morgan Stanley (NYSE: MS) will lead the deal. Goldman Sachs (NYSE: GS), Bank of America Merrill Lynch (NYSE: BAC), Barclays Capital (NYSE: BCS) and JP Morgan (NYSE: JPM) will help with the underwriting.
The IPO process could be finalized by May, the report said.
A valuation wasn't mentioned, only that recent trading on private exchanges pointed to a $80 billion-plus valuation.
A ticker also wasn't mentioned, although recent reports suggest "FB" is the stock symbol. An exchange is also no known.
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Facebook IPO
Jill on Jan 31, 2012 05:41 PMMark as Spam | Reply to this comment
$5 billion is still a lot of money - and I suppose they had to do it - but I think there will be quite a bit of disappointment with the lowering of the amount. They're raising a lower amount of cash plus they have to now act like a public company and reveal everything about their numbers. Definitely a lot of risk here considering users are really starting to hate the site. This could be yet another misstep.
http://mankabros.com/blogs/onmedea/2012/01/27/facebook-and-the-disappearing-valuation/