Facebook IPO watch: In the face of over-subscription, Facebook (FB) aggressively raised its IPO price range from $28-$35 to $34-$38. Assuming a public offering price of $38, the ceiling of the new Facebook IPO price range, Facebook’s market value will reach $103 billion. Facebook expects only 10%-20% of the stock will flow to the private investors. read more: Facebook lifted its IPO price range to $34-$38 per share.
Analysis revealed that, according to an assumed public offering price of $36, the median of the new Facebook IPO price range. Facebook will raise funds of as much as $12.1 billion by issuing 337.4 million shares of common stock. Calculating the number of employees, profit, the market value of Facebook will be several times higher than other leading Internet companies. Market research firm eMarketer predicts that Facebook’s revenue will grow up to 64% this year, which means a three year consecutive slowdown in Facebook’s revenue growth.
The latest regulatory filing shows that Facebook itself plans to sell 180 million shares in the IPO and the shareholders will sell another 157.4 million shares. The company expects to receive proceeds of more than $5.5 billion on the basis of an assumed IPO price of $35, a group of early investors will cash in millions of dollars in the Facebook IPO, among which CEO Mark Zuckerberg will sell 30.20 million shares of common stock to get $1.06 billion on the basis of an assumed IPO price of $35 per share, investment bank Goldman Sachs will get $462 million by selling 13.20 million shares.
Also read: Facebook IPO has been over-subscribed.