Print 24 comment(s) - last by deathwombat.. on May 16 at 3:47 PM

Facebook is now looking to raise about $12 billion

Facebook's $100 billion initial public offering (IPO) was already set to be one of the largest IPO's in the tech industry, but now, the social network is looking to surpass the $100 billion mark by raising another $12 billion.

According to a filing with the U.S. Securities and Exchange Commission, Facebook increased the price target range from $28-$35 per share to $34-$38 per share today. This values Facebook at about $93 billion to $104 billion, exceeding the $100 billion mark.

At about $36 per share, Facebook would raise $12.1 billion.

Social networking giant Facebook revealed that it was planning a 2012 IPO back in November 2011. The company was talking about raising $10 billion for the initial public offering. Many had previously thought a 2011 IPO was in the works, but a shaky economy and ongoing privacy battles with the U.S. government put everything on hold.

In February 2012, Facebook made the IPO official. The company said it was looking to sell $5 billion of its private shares and hoped to be valued at $100 billion.
The set date for the company to go public was May 18.

The social network plans to complete the IPO later today, which is two days ahead of schedule. Facebook is expected to price its shares on Thursday and begin trading under the ticker "FB" on Friday.

Facebook's IPO is the largest ever to come out of Silicon Valley. In 2004, Google raised nearly $2 billion. Last year, Groupon raised $700 million and Zynga raised $1 billion.

After the IPO is completed and Facebook begins trading, the social network plans to sell 12.3 percent of the company, or $337.4 million shares.

Source: Reuters

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RE: Over valued
By rubbahbandman on 5/15/2012 11:17:19 AM , Rating: 3
It's overvalued except when you consider over 800 million people use the site regularly. The equity is in the userbase, even a company like Apple is technically overvalued when you compare it to big oil companies like Exxon although growth potential is naturally priced into stock valuations. In Facebook's case, the market will assume that Facebook will figure out how to monetize their site's traffic.

RE: Over valued
By lelias2k on 5/15/2012 11:42:29 AM , Rating: 2
Thank you!

The potential is there. Whether or not this will translate into something else is a different story, but speculation is the soul of a stock market anyway.

But I wouldn't doubt FB has already created more revenue than most people think. There are many companies doing a great job using it not only as a marketing tool but also for customer service.

RE: Over valued
By FITCamaro on 5/15/2012 12:43:40 PM , Rating: 2
Of course then you consider how many of those 800 million actually provide them any real revenue other than Facebook using their information to sell to marketing companies.

And I agree, Apple is WAY overvalued. Even with all the cash they have.

RE: Over valued
By iluvdeal on 5/15/2012 5:21:01 PM , Rating: 2
A 12 P/E is not overvalued. Stick to commenting on tech guys, your financial analysis is WAY lacking. Here's an article comparing FB to GOOG, AAPL:

RE: Over valued
By Mint on 5/15/2012 8:48:21 PM , Rating: 4
That would be true if the 12 P/E stayed that way for a decade. The reality is that it's really, really hard to maintain high margins in the tech industry unless you have some unmatchable IP/tech/marketshare, like Intel or Google.

Apple recently got some really fat margins on its iPhone and iPad sales, but they can't stay there forever especially now that everyone has caught up with smartphone packaging and Win8 tablets on the way.

Can they keep coming up with new gadgets that nobody else has thought of, while simply packing together parts from other manufacturers that anyone can get a hold of?

I doubt it.

RE: Over valued
By FITCamaro on 5/16/2012 8:23:20 AM , Rating: 2
I view Google and Apple as way overvalued as well. It's all on image. Nothing more.

RE: Over valued
By tng on 5/16/2012 8:25:37 AM , Rating: 2
That would be great if investment people really understood the tech industry, most really don't. Trends, PE ratios, current and rumors of upcoming products don't equate to understanding what the core of a company is.

FB is a company that has a product yes, but in the end it will only take one real issue to drive huge numbers of it's subscribers away. Look at what happened to Netflix practically overnight.

“We do believe we have a moral responsibility to keep porn off the iPhone.” -- Steve Jobs

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