Facebook (FB) Sets IPO Terms, Values Company at up to $96 Billion
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Facebook (Nasdaq: FB) issued a very important IPO update Thursday afternoon, indicated the expected price range of the stock and initial valuation.
The social media juggernaut plans on selling 337,415,352 class A shares at an initial public price between $28.00 and $35.00 per share. A price at the high end of the range and including shares for over allotment, the proposed maximum offering size of the IPO is $13.58 billion.
Facebook expects to have a total of 2,138,085,037 Class A and Class B common stock to be outstanding after the initial public offering. This would suggests a valuation of approximately $75 billion if shares price at the top end of the expected range. Including restricted stock units, options and common stock to be issued following the acquisition of Instagram, the valuation gets pushed to $96 billion at the high end of the range. This is lower than the initial estimates of a $100-$110 billion valuation.
Facebook has two classes of stock. The holders of outstanding shares of Class B common stock will hold approximately 96.3% of the voting power, and founder, Chairman, and CEO, Mark Zuckerberg, will hold or have the ability to control approximately 57.3% of the voting power following the offering.
CEO Mark Zuckerberg will be selling 71,088,562 shares in the offering.
Facebook plans to list on the NASDAQ in a deal that is expected to debut on May 18.
The social media juggernaut plans on selling 337,415,352 class A shares at an initial public price between $28.00 and $35.00 per share. A price at the high end of the range and including shares for over allotment, the proposed maximum offering size of the IPO is $13.58 billion.
Facebook expects to have a total of 2,138,085,037 Class A and Class B common stock to be outstanding after the initial public offering. This would suggests a valuation of approximately $75 billion if shares price at the top end of the expected range. Including restricted stock units, options and common stock to be issued following the acquisition of Instagram, the valuation gets pushed to $96 billion at the high end of the range. This is lower than the initial estimates of a $100-$110 billion valuation.
Facebook has two classes of stock. The holders of outstanding shares of Class B common stock will hold approximately 96.3% of the voting power, and founder, Chairman, and CEO, Mark Zuckerberg, will hold or have the ability to control approximately 57.3% of the voting power following the offering.
CEO Mark Zuckerberg will be selling 71,088,562 shares in the offering.
Facebook plans to list on the NASDAQ in a deal that is expected to debut on May 18.
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