Facebook IPO set at $11.8 billion

May 3, 2012
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Facebook IPO set at $11.8 billion

When you head to the stock exchange to pick up a piece of Facebook at their IPO this summer, you'll be paying somewhere between $28 and $35 a share. This is what Facebook has let the world know this will be the price for prospective stock buyers when the company lets loose its Initial Public Offering. This preliminary price range would set the company up for a gigantic bit of valuation, people familiar with the matter suggesting Facebook Inc. to be worth $85 billion to $95 billion at the fall.

Facebook's price will have the company blowing up from its original set value of course, and this IPO will almost certainly blow away the IPO of Google which was, believe it or not, setting Google at a value of $23 billion back in 2004. Facebook is of course part of a whole new world of value and mobile power, this evidenced not only by these prices but by CEO Mark Zuckerberg's purchase of Instagram just earlier this year at $1 billion USD.

What we're to understand now is that Facebook will be seeking to sell 337.4 million shares, with about half of these shares being sold by the founders of the company as well as employees and investors. Facebook has in the very recent past been expected to go public with the company gaining a valuation of up to $100 billion. We'll see how this all plays out in what we expect will be inside the next two weeks at Facebook's big event.

[via WSJ]


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