It was believed that Facebook was adding more shares to its IPO, set to begin trading tomorrow, but as it turns out those extra shares came from early investors looking to grab some cash. Now it looks like the final IPO price is being narrowed down, with shares expected to fall in the region of $34-38, up from $28-25. The final IPO share prices would put Facebook’s value close to $104 billion.
The final price will be set once the markets stop trading at the end of today. After that, Facebook will announce whether or not bids placed by investors for the extra shares will be filled. Then, the general public will be able to begin buying and trading Facebook shares once the markets open on Friday, trading under “FB”. The official start time for Facebook trading hasn’t been confirmed just yet.
As for Mark Zuckerberg, it’s said that he plans to sell around $1.2 billion worth of shares, but his personal stake will still be worth around $19.1 billion after the IPO goes live. Meanwhile, co-founder of Facebook, Eduardo Saverin, has come under fire for renouncing his US citizenship in order to cash in on the IPO. Saverin plans to live in Singapore going forward, which has no capital gains tax, so he’ll be able to fully reap the benefits of Facebook’s success without being taxed by the United States.
[via Wall Street Journal]