Facebook IPO watch: Two venture capital institutional shareholders of the world’s leading social networking site Facebook: Accel Partners and Goldman Sachs plan to sell $1.8 billion worth shares of Facebook, thus becoming the two largest equity seller since the Facebook launched its IPO.
The statistics show that on the basis of the top ceiling of the Facebook IPO price range, Goldman Sachs will sell the 13.2 million shares for $461.6 million and Accel Partners, the early investor of Facebook, will sell $1.3 billion worth shares of Facebook.
According to a regulatory filing, the Facebook IPO program released by Facebook on Thursday shows that the company expects to raise funds of $11.8 billion, these selling shareholders including CEO Zuckerberg, Digital Sky Technologies (DST), will sell aggregately 157.4 million shares for $35 per share. But these investors will not be completely sold out all the shares of Facebook they hold. Also read more about the Facebook IPO price range of $28-$35 per share.
An analyst pointed out that market doesn’t expect these insiders to run away, but their reductions in the numbers of shares are larger than the consensus expectations. This may indicate that part of the shareholders may believe Facebook stock price has been on the ceiling as Facebook stock price has climbed up 50% over the past twelve months.
The regulatory filing also shows that calculated by the high-end of the Facebook IPO price, the compnay will command a market value of approximately of $96 billion. The executives and investors may cash in shares for $5.5 billion and the existing shareholders will buy these shares at the price of $1.11 per share.
Find more upcoming IPOs, please go to IPO calendar.