Updated: Social networking giant Facebook
is looking to file its S-1 for an initial public offering next week, as
early as Wednesday, according to the Wall Street Journal, citing
anonymous sources.
Speculation has been running high
in recent days that Facebook would be filing an IPO in the coming days.
A Facebook IPO could value the company as high as $100 billion with an
offering of $10 billion, numerous outlets have previously reported. The
Facebook IPO could value the company at $75 billion to $100 billion and
Facebook is close to selecting Morgan Stanley as the lead underwriter on the deal, according to WSJ. Goldman Sachs is like to play a role in the IPO, the newspaper reported. CNBC is also confirming the report.
The Facebook IPO is widely expected to be one of the biggest in
recent years, if not the biggest ever. Secondary investors have still
been actively trading on shares in the company in recent weeks on
private exchanges and with independent brokers, according to people
involved with trades who I’ve spoken to.
Last year, Facebook passed the 499 investor limit for private
companies. After passing that limit private companies must file their
financials publicly after 120 days after the end of that calendar year.
In other words, Facebook has until April of this year to file its
financials. It doesn’t necessarily have to go public but it’s widely
expected to.
The Facebook IPO will be a significant milestone for the Internet and
technology industry as Facebook is one of the fastest growing and
prominent companies, now with more than 800 million users. Private
companies hoping to go public are closely watching the potential
offering, as are venture capitalists hoping to see returns on their
companies. Many are watching to see if the Facebook IPO will herald a
new Netscape moment, lifting the market.
Today Morgan Stanley stock is trading up slightly, about 0.79% at
$18.29. However, Goldman is seeing a nice bump, up 2.06% at $110.80. - Forbes
.png)
0 Comments