Facebook Sets Price For IPO At $28-$35 Per Share
Today Facebook has set the estimated price for their IPO at $28-$35 per share according to a revised prospectus. At the mid-point of this range, Facebook would be on track to raise $10.6 billion with a company value of about $86 billion.
Facebook is finalizing their prospectus as they prepare for a road show to meet investors in cities like New York City, Boston, Chicago, Baltimore, and San Francisco. On Friday Facebook executives will meet in New York with the sales force of the company’s underwriters to brief them on the IPO presentation. The salespeople will reach out to prospective investors to start shopping for the offering.
The filing today is the first time that Facebook has indicated where its shares will be valued. Facebook is expected to trade on the Nasdaq under the ticker “FB” in two weeks. Facebook is expected to start trading on May 17th or May 18th.
Investors have been excited about Facebook’s offering, which is expected to be the largest Internet IPO since Google in 2004. Facebook’s daily active users increased 41% to 526 million in the first quarter. Even though revenue at the company has risen, their profit in the first three months of the year fell 12% to $205 million since expenses jumped significantly.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry