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.
At least, that's according to CNBC, which just sent out the following message on Twitter:
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 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.