Facebook Shares Will Open at $38 USD
May 17, 2012 6:20 PM
(Source: Getty Images/Justin Sullivan)
Company is estimated to be worth around $107B USD, including unexercised share options
Facebook -- the world's
most used website
and the largest social network in the world -- is on the eve of its initial public offering of stock.
The price of shares --
-- was just announced. That places Facebook's tenative market capitalization at $81B USD,
more than some expected
. Combined with executives unexercised share options, the company's total valuation appears to be around
, according to experts. That's notably a higher valuation than the world's top online retailer, Amazon.com, Inc. (
) who "only" has a current market cap of $98.4B USD.
The IPO will raise $16B USD, based on the announced share price. The IPO is the third largest in U.S. history, behind only Visa Inc.'s (
) 2008 offering of $19.7B USD in stock and General Motors, Inc.'s (
) $18.1B USD
post-bankruptcy stock offering
Shares will trade under the symbol "FB". It is unlikely that many shares will reach the hands of small independent traders; the IPO is underwritten by finance house Morgan Stanley (
) and most shares will go to large institutional investors, mutual funds and hedge funds. This is different from other top tech IPOs of the past, such as Google, Inc. (
) who sold directly to individual investors via a "Dutch auction" process.
The expected offering date
is May 18
, pending approval by the
U.S. Securities and Exchange Commission
The stock offering is destined to transform Facebook's early investors and founding members into multi-millionaires, if not billionaires. Facebook's co-founder has reportedly
abandoned his U.S. citizenship
in order to avoid paying much of the taxes on the windfall that will be coming his way. Iconic co-founder Mark Zuckerberg remains a U.S. citizen and has
pledged to give away his fortune
to charity when he dies, as suggested by his mentor, Bill Gates.
Facebook is a company of much controversy and potential. Some believe it could increase profits by a substantial multiplier if it jumped into the online payments business as a competitor to eBay, Inc.'s (
) Paypal service. However,
concerns over privacy
remain active discussions and may make some investors cautious of diving in to the Facebook stock.
"Vista runs on Atom ... It's just no one uses it". -- Intel CEO Paul Otellini
Facebook Co-Founder Could Save $67 Million in Taxes After Axing U.S. Citizenship
May 17, 2012, 11:50 AM
Facebook IPO Exceeds $100 Billion Mark
May 15, 2012, 10:37 AM
Facebook to Go Public May 18
May 2, 2012, 1:47 PM
Facebook, FTC Settle Privacy Case
November 30, 2011, 9:46 AM
Two UK Men Receive 4-Year Prison Sentences for Using Facebook to Encourage Riots
August 19, 2011, 11:45 AM
Google plans ultra-fast wireless Internet for Research Triangle Park, N.C.
August 12, 2016, 6:30 AM
Twitter Senior VP: "Diversity is Important, But We Can’t Lower the Bar"
November 9, 2015, 9:59 AM
CNN Resorts to Internet Censorship to Promote Clinton Over Senator Sanders
October 15, 2015, 2:47 PM
Breaking Bad: How to Crash Google's Chrome Browser With Just 8 Characters
September 23, 2015, 11:08 AM
Quick Note: Amazon UK Offers £10 Back on Any Order £50 or Over
August 3, 2015, 12:05 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Most Popular Articles
Phillips 55’ 4K Smart TV – Is This Really a Deal? We Think So.
November 25, 2016, 9:44 AM
Sales Battle - Apple iPad Mini vs Samsung Galaxy Tab
November 29, 2016, 12:36 AM
Echo Dot is a Best Seller - Sold Out Until December 1, 2016.
November 26, 2016, 6:00 AM
PlayStation 4 Pro – 4K Console for 4K TVs
November 28, 2016, 1:00 AM
Star Wars Android Smartphones coming to a Japanese Galaxy Near You
November 26, 2016, 5:00 AM
Latest Blog Posts
Dec 2, 2016, 5:00 AM
Surface Ergonomic Keyboard
Dec 1, 2016, 3:01 AM
Chapeconense plane crash: Football rallies around Brazilian Team
Nov 30, 2016, 1:00 AM
How to Extends Your iPhone’s Battery Life
Nov 29, 2016, 12:49 AM
Nov 28, 2016, 1:12 AM
News: Fidel Castro
Nov 27, 2016, 5:00 AM
Nov 26, 2016, 5:00 AM
Changes in Social status affect the way genes turn on and off within immune cells.
Nov 25, 2016, 5:12 AM
Austrian far–right hopeful Hofer may back EU vote.
Nov 24, 2016, 4:00 AM
Final Fantasy XV Leaked Before Nov 29 Launch Date
Nov 23, 2016, 1:00 AM
Nov 22, 2016, 2:26 AM
Nov 21, 2016, 1:00 AM
HTC Makes Big Moves in China
Nov 20, 2016, 2:00 AM
Do you know who is the number one company in the word?
Nov 19, 2016, 5:30 AM
Foldable Cardboard ”EcoHelmet” wins James Dyson Award’s Top Prize
Nov 18, 2016, 2:39 AM
Scientists Discover Roundest Object Ever Spotted in Universe
Nov 17, 2016, 1:00 AM
Smallest Device Lets You Print Almost from Anywhere
Nov 16, 2016, 9:32 AM
Cancer Screening in the Community Is there a link between Cancer and Poverty?
Nov 15, 2016, 8:00 AM
Points to Consider when Buying Your New PC – Window 10 PC Buying Guide
Nov 14, 2016, 5:00 AM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information