Facebook's price range for its initial public offering (IPO) has reportedly been finalized. It will not be re-filed with the U.S. Securities and Exchange Commission (SEC) before today's pricing call.
ALERT: Facebook IPO price range is now final. Due to SEC requirements, Facebook cannot price higher than low $40s. – Source
Pricing discussions remain ongoing, and a final determination won't be made until after the bell today, according to a person familiar with the matter cited by CNBC. While the social networking giant could still price above the expected range, SEC doesn't allow companies going public to price too far from what has been disclosed to the public.
On Tuesday, Facebook increased its IPO price range from $28-$35 to $34-$38 per share. You can thus argue that Facebook will not be able to set its shares higher than in the low $40s, maybe $45 at the most. Most likely though, I would wager we'll see something just below $40.
On Wednesday, Facebook increased its IPO size by 25 percent. The social networking giant is now offering some 421.2 million shares. This means Facebook could raise anywhere between $14.32 billion and $16.01 billion when it goes public (between $6.12 billion and $6.84 billion for itself, and the rest for investors). If you include the over-allotment, meaning a grand total of 484.4 million shares, Facebook could raise anywhere between $16.47 billion and $18.41 billion.
Facebook is widely expected to start trading on the Nasdaq tomorrow under the "FB" ticker. Many believe this Friday is the big day; shares will be priced on May 17 (today), with trading beginning on May 18 (tomorrow).
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