Facebook to stop taking IPO orders ahead of schedule (rumor)

Facebook to stop taking IPO orders ahead of schedule (rumor)

Summary: Facebook is doing a good job selling its initial public offering (IPO) to investors. The company is doing so well, in fact, that it plans to stop taking IPO orders two days early, according to a recent rumor.

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Facebook plans to close orders for its initial public offering (IPO) two days ahead of schedule; the social networking giant initially planned to finish taking orders on Thursday. Menlo Park will now likely finish taking orders after U.S. markets close on Tuesday (tomorrow), according to a person with knowledge of the transaction cited by Bloomberg.

The rumor comes just days after a different one from Bloomberg that said Facebook's IPO has been generating weaker-than-expected demand from institutional investors. It conflicted with a separate rumor from Reuters that said Facebook's IPO is already oversubscribed.

The latter is more likely given the hype surrounding the company. Even ordinary Facebook users are looking to invest, because they can cite numbers for the social network that they understand. As of March 31, 2012, Facebook has:

  • More than 901 million monthly active users.
  • More than 526 million daily active users.
  • More than 488 million monthly active mobile users.
  • More than 125 billion friend connections.
  • More than 3.2 billion Likes and comments made every day.
  • More than 300 million photos uploaded every day.

Facebook is offering 180 million shares of its Class A common stock and the selling stockholders are offering 157.42 million shares of Class A common stock. Facebook co-founder and CEO Mark Zuckerberg will personally sell 30.2 million shares for the IPO. Despite this, he will still control the majority of the company: 57.3 percent of voting shares after the IPO. The company has set a $28 to $35 IPO price range, but many expect Facebook will raise it as the final date draws closer.

Facebook is widely expected to go public this week on the Nasdaq market 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.

See also:

Topics: Social Enterprise, Banking, Legal

Emil Protalinski

About Emil Protalinski

Emil is a freelance journalist writing for CNET and ZDNet. Over the years,
he has covered the tech industry for multiple publications, including Ars
Technica, Neowin, and TechSpot.

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