Close
Are you sure? Are you sure you want to report this comment? I understand, report it. Cancel

Facebook boosts IPO size by 25 per cent - report

Facebook boosts IPO size by 25 per cent - report

Wed 16 May 2012 7:31am GMT / 3:31am EDT / 12:31am PDT
Business

Social network will add 85 million shares, raising potential IPO value to $16 billion

A source close to Facebook claims that the market-leading social network will increase the size of its IPO by 25 per cent.

According to a report on Reuters, Facebook will boost the number of shares released on Friday from 337.4 million to 422 million to satisfy investor demand.

This follows the decision to raise the IPO price range from $28-$35 to $34-$38. With 422 million shares at a mid-point value of $36, Facebook's IPO would be worth $16 billion - the third largest in history behind Visa Inc. and General Motors.

If true, Facebook would be valued between $93 billion and $104 billion, roughly equivalent to Amazon.

Another source claimed that the high levels of demand will cause the IPO to close two days ahead of schedule, today, though the shares won't be sold until Friday.

3 Comments

Greg Wilcox
Creator, Destroy All Fanboys!

2,178 1,127 0.5
Something about this deal irks me to no end. I just wonder how many people will drop their savings into this stock, hoping they'll get a huge return, only to be shocked when it under performs and they end up losing money because they're stuck with a stock that's probably going to drop in price faster then they think...

Posted:2 years ago

#1

Andrew Ihegbu
Studying Bsc Commercial Music

451 162 0.4
Exactly Greg. When Facebook pulls a MySpace, don't say I didn't warn you.

Posted:2 years ago

#2

Jim Webb
Executive Editor/Community Director

2,266 2,405 1.1
Agreed, agreed, agreed.

This IPO is overinflated before it's even offered.


Invest at your own is a common mantra for investors and usually isn't a required statement. With Facebook, it should be plastered on everything about the IPO just in case you forgot.

Posted:2 years ago

#3

Login or register to post

Take part in the GamesIndustry community

Register now