REPORT: Facebook Actually Looking To Raise $5 Billion, Not $10 Billion From IPO


A new report now states that Facebook is expected to raise $5 billion according to a preliminary IPO prospectus rather than the $10 billion from earlier reports. However this could be increased by investor demand. The smaller deal size is due to a decision to start with a conservative base before deciding to increase.

Facebook has decided to hire five bookrunners. Morgan Stanley will be in the lead role. Goldman Sachs, Bank of America Merrill Lynch, Barclays Capital, and JP Morgan will be the other bookrunners.

The IPO is expected to finalize in May assuming that the SEC process goes smoothly. The final price of Facebook shares will unlikely be known for at least another three months. The Facebook stock on private exchanges are trading at about an $80 billion valuation.

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at

REPORT: Facebook Actually Looking To Raise $5 Billion, Not $10 Billion From IPO Comments

  1. Warren Buffett says:

    Throughout the stock markets history, there have been dozens of scandals involving listed companies, stock investing methods and brokerage. A classical case related to insider trading of listed companies involved Raj Rajaratnam and its hedge fund management firm – the Galleon Group.

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