Facebook to increase IPO by 25% (rumor)
Update on May 16 - Facebook increases IPO by 25%
Previously, given the sale of some 337.4 million shares, the price range meant Facebook could raise between $5.04 billion and $6.30 billion for itself, as well as between $4.41 billion and $5.51 billion for its investors. Now, given the sale of 388.0 million shares, the new price range means Facebook could raise anywhere between $13.19 billion and 14.75 billion.
On Wednesday, if Facebook amends its IPO an eighth time, it will be offering some 422 million shares, assuming the 25 percentage number is accurate. This means Facebook could raise anywhere between $14.35 billion and $16.04 billion.
Raising the number of shares offered two days in a row is quite a bold move. It means the company is seeing very high demand and believes it can capitalize on it without hurting its prospects when it goes public. We'll know tomorrow morning if this is the case or not (see Facebook IPO demand is strong and weak (rumors)).
Facebook is widely expected to start trading on the Nasdaq this week under the "FB" ticker. Many believe this Friday is the big day; shares will be priced on May 17, with trading beginning on May 18. This rumor will have to beat out another one, which says there could be a delay.
Update on May 16 - Facebook increases IPO by 25%
See also:
- How much is Facebook worth?
- Facebook files for $5 billion IPO
- Facebook's IPO in pictures and Facebook's IPO by the numbers
- Facebook updates IPO filing to underline Zynga deal
- Facebook details Zuckerberg's $500,000 salary, 45% bonus
- Facebook amends IPO a fourth time, includes Q1 2012 financials
- Facebook sets $28 to $35 IPO price range
- Facebook roadshow kicks off with a video, IPO prospectus released