Facebook IPO watch: According to informed sources, the world’s largest social networking site Facebook has lifted its IPO price range from the previously announced $28-$35 to $34-$38.
On the basis of an assumed public offering price of $35 per share, which is the middle point of the new Facebook IPO price range, the company will sell $12.1 billion worth shares in the deal. Calculated by the ceiling of the new Facebook IPO price range, Facebook’s market value will reach as much as $103 billion.
Wall Street has predicted that Facebook will raise the IPO price range, because many investors are eager to participate in the largest IPO in the history of the Silicon Valley. Facebook started IPO road show last week, which has attracted a lot of attention from investors. Facebook saw its shares be over-subscribed only a few days after the road show.
According to another insider, Facebook plans to complete the subscription work on Tuesday, two days ahead of schedule, which also reflects the great enthusiasm of investors on the stock and strong demand. The insider projected Facebook will determine the final issue price on Thursday, and then go public the Nasdaq on Friday under the ticker symbol “FB.”
The bottom of the new Facebook IPO price range is 21% higher than the previously announced bottom, which means Facebook has to submit the amended filing to the U.S. Securities and Exchange Commission. The insider predicted Facebook will formally submit the filing to announce the new IPO price range on Tuesday morning.
The Facebook IPO lead underwriters are Morgan Stanley, JP Morgan Chase and Goldman Sachs. There are another 33 banks working as the co-managers for the Facebook IPO. Read the related article: Facebook added underwriters.
According to sources, Facebook co-founder and CEO Mark Zuckerberg will not go to New York to ring the NASDAQ opening bell on Friday, instead, he will celebrate with staffs in the company’s headquarter. After the Facebook IPO, Zuckerberg will be still the biggest shareholders of Facebook, who controls 57% of the voting rights.
Also read: Facebook IPO range was raised to $34-$38.