Facebook raises stock offering, shoots for $18.5B with IPO

Wednesday, 16 May 2012  |  Admin

Facebook raises stock offering, shoots for $18.5B with IPO

Computerworld - Facebook's initial public offering may be getting even bigger.

Reports circulated Tuesday that the social network is working to increase the size of its IPO by 85 million shares, according to an MSNBC report and others. Such an increase in the number of shares that will be available to potential investors means the company could raise up to $18.5 billion in its initial public offering.

This plan for the 25% increase in shares is expected to be filed in documents with the U.S. Securities and Exchange Commission today. The company now is expected to offer more than 421 million shares.

Facebook's market debut is expected Friday.

The news comes on the heels of Facebook's raising the price range of its stock shares Tuesday.

The social network filed an amendment to its IPO registration with the SEC that increased its estimated stock price between $34 and $38 per share. That's up from the original range of $29 to $34 per share.

The new price range could boost Facebook's valuation to more than $100 billion.

The company was expected to close the books on its IPO on Tuesday and then officially set its stock price Thursday.

Facebook is pushing forward, increasing its stock price and the number of shares that will be available, despite strikes against its public image in the past week.

survey released Tuesday found that half of Americans think Facebook is a passing fad. Three out of every five Facebook users say they have little or no faith that the social network will keep their personal information private, the survey found.

 

In another development Tuesday, General Motors, believed to be the country's third-largest advertiser, pulled a $10 million advertising deal from Facebook, concluding that its paid ads on the social network weren't helping the auto maker sell more products.

That's tough timing for Facebook executives, who have been touring the country in an IPO roadshow pitching the company as a great investment. A major part of its strategy has been based on the strength of the company's advertising business.

Rob Enderle, an analyst with the Enderle Group, said GM's pullout, days before the IPO debut, was a blow to Facebook and could prompt serious, old-school investors to rethink whether to buy Facebook's stock.

"The GM thing alone looked like some [Facebook] executive ticked GM off and they punitively worked to torpedo the IPO," said Enderle. "Their announcement basically says Facebook's revenue is based on a false premise that advertising is actually worth something on the service."

 

 

News courtesy of Computerworld.com 

 

Latest News Articles
Thursday, 21 December 2017  |  Elizabeth

We are now closed for the Christmas Break. Any orders submitted after 1pm on 21st December 2017 will be processed for despatch on Monday the 8th January 2018.

Friday, 17 November 2017  |  Elizabeth

All orders placed between Saturday 18th November and Monday 27th November will have a 20% discount applied!!

Tuesday, 23 May 2017  |  Admin

We will be processing completed orders for despatch until 1pm on 9th June 2017 for delivery 12th June 2017.

Thursday, 22 December 2016  |  Admin

We will be processing completed orders for despatch until 1pm on 22nd December 2016 for delivery 23rd December 2016.

Tuesday, 5 January 2016  |  Admin

IPS (In-plane switching) screen technology explained.

Shop by Brand
Shop by Price