Facebook IPO to Set Value at $100B, Experts Say Details Could Change
Facebook’s initial public offering could be available as early as the second quarter of 2012 and IPO advisors are already weighing in the situation.
The social networking giant is currently engaged in talks with the securities exchange commission about the timing for the IPO.
The first filings could come before the end of this year, according to the WSJ.
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Facebook is looking to raise $10 billion in an IPO that would value the company at more than $100 billion.
Facebook’s value at $100 billion would double what it was worth in January, when the social networking leader announced its decision to invest $1.5 billion from Goldman Sachs Group Inc, and various other backers.
Details could change on the IPO when it finally arrives, according to Lise Buyer, principal of the Class V Group, an IPO advisory firm.
“It’s far too early to accurately predict where the valuation would be on deal day,” said Buyer to Bloomberg.
At the $10 billion value mark, Facebook’s offering would raise the most money ever from a technology IPO.
This fact should entice investors looking to obtain a piece of the company.
The previous record holder, Infineon Technologies, that generated $5.23 billion in its 1999 debut, would be completely outdone by Facebook whose value doubles its own back when its IPO was first made available.
This IPO would also rank Facebook with the 40 most valuable companies in the world, a list that includes Toyota Motor, Verizon Communications and Merck.
According to the WSJ, the final value of the company and the value used to price shares will be determined by the market and the European economy.
Mark Zuckerberg, the CEO of Facebook, has chosen to keep the company private much longer than analysts originally expected him to, according to the WSJ.
However, Zuckerberg seems to finally be warming up to the idea of the company going public.
