Facebook shooting for May IPO

Rue Liu - Mar 28, 2012, 5:14 pm CDT
Facebook shooting for May IPO

Facebook may be ready to hold its initial public offering in May, according to a source familiar with the matter. The company recently asked firms to stop the trading of its privately held shares in the secondary market, a sign that it’s trying to eliminate any valuation churns that might complicate its IPO.

Facebook reported a $1 billion profit in 2011 on $3.71 billion in revenue. The social network has 845 million users worldwide. It could raise as much as $10 billion for its IPO with a company valuation of $100 billion. This is the largest IPO of any internet-related company in Silicon Valley. In contrast, Google raised $1.7 billion in its IPO back in 2004.

Facebook made its initial filing back in February but has since had to revise its prospectus three times. If its last amendment gets approved by the Securities and Exchange Commission then its IPO should be able to take place in May. However, its not clear which week of May the company is shooting for.

[via Bloomberg]

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