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Facebook boosts IPO size by 25 per cent - report

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.

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Latest comments (3)

Greg Wilcox Creator, Destroy All Fanboys! 5 years ago
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...
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Andrew Ihegbu Studying Bsc Commercial Music, University of Westminster5 years ago
Exactly Greg. When Facebook pulls a MySpace, don't say I didn't warn you.
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Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.5 years ago
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.
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