Facebook IPO price watch: There is no doubt that what the investors are most concerned about is the facebook (FB) IPO stock price at present. As matter of fact we cannot get the exact figure now since the price range is restricted, but fortunately, we can estimate this based on the past experiences.
It was said that Facebook would submit the IPO application to the U.S. SEC on Wednesday with the valuation of $75 billion to $100 billion, intending to finance $10 billion. The $100 billion valuation breaks the highest record of IPO valuation of the Internet companies, which was kept by the search engine giant Google previously. In 2004, the Google IPO valuation was $24.6 billion.
The New York research institution PrivCo, which tracking the non-listed companies, released a report, showing that Facebook has not determined the stock market exchange, but the ticker symbol was likely to be “FB”. PrivCo predicted, Facebook would choose the NYSE. The reasonable Facebook IPO valuation should be $90 billion-$95 billion and the fully diluted shares should be approximately 2.35 billion. Calculated by this, the Facebook IPO price should be initially set at $38-$40 per share. Read more about the Facebook IPO stock price.
Underwriters will set the Facebook IPO stock price at a high level, based on the demand conditions and compared with the similar pre-released Internet stocks. These internet website company such as Zynga, LinkedIn, Pandora, everyone, Sina and Groupon have achieved favorable IPO issue prices. In addition, the underwriters also will introduce the Facebook’s huge growth potential as the basis for its high issue price.
Some analysts recommended investors to buy Facebook IPO shares as many as possible. After Facebook has been listed for some time, the IPO investors would have a good chance of selling at great profits. For the long-term investors, the price-earnings ratio and growth factors are very important, while for the short-term investors, the stock supply and demand condition are the most important factors. The Long-term investors could have sufficient time to observe Facebook stock prices and fundamental factors, in order to make the decisions to hold or sell shares.
The Facebook IPO will become the largest one in recent years while the secondary market investors are still actively trading facebook shares by the private equity firms and independent brokers in recent weeks.