Facebook IPO watch: Facebook submitted the amended prospectus to the U.S. Security And Exchange Commission on Thursday. The filing showed that even after the Facebook IPO, Mark Zuckerberg, the co-foundr and CEO of the company, will still hold the largest share of Facebook.
The latest amended F S-1 form filing showed that the company will sell 337.4 million shares and the Facebook IPO price is anticipated to between $28.0and $35.0 per share. On the basis of the ceiling of the preliminaryFacebook IPO price range, the valuation of the company will reach approximately $95.0 billion. Also read about: Facebook IPO prices between $28.0 and $35.0 per share.
Facebook said in the regulatory filing the company will sell 180 million shares of common stock and the selling shareholders will sell 157.4 million shares. Calculated by the middle point of the previously estimated Facebook IPO price range, Facebook will collect net proceeds of approximately $5.6 billion.
Zuckerberg will offer 30.2 million shares in this public offering. After the Facebook IPO, he will have the 57.3% voting right of the company. Zuckerberg will receive net proceeds of more than $1 billion from the public offering and he will still have $17 billion worth shares in Facebook. The proceeds received from the sales of the shares offered by Zuckerberg will be used to pay the huge taxes on the exercise of the $60 million worth stock option.
In view of the majority stake held by Zuckerberg, he will still be able to take the absolute control over any important decisions of the company, including the elections of the board of directors and the company’s strategies.
Also read: Facebook will hold talks with the main underwriters.