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Facebook IPO


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The Initial Public Offering (IPO) of Facebook is expected to be held in May 2012. The flotation is expected to be up to 100 billion dollars. The stock market flotation of the social networking company was slated to May 17, 2012, but could take place in the middle of May.

Once the IPO is filed, the company could create at least 1000 millionaires. It would also top any Silicon Valley company from Netscape to Google Inc.

Facebook co-founder Eduardo Saverin has renounced his US citizenship in a move to avoid paying taxes before the Facebook s IPO.

Preliminary Prospects

According to the preliminary prospects, Facebook is seeking to raise $5 billion. The document presented announced that the site has 845 million active users and the website receives 2.7 billion daily likes and comments.

Founder Mark Zuckerberg will retain 22% ownership in Facebook and will own 57% of the voting shares.

Facebook valued the shares at $38 each which would put the price of the company at $104 billion, the largest valuation to date for a newly public company.

Timeline

  • May 16, 2012 - Facebook announced that it would sell 25% more shares than originally planned.
  • May 17, 2012 - Facebook priced its IPO at $38 a share. Facebook CEO and founder Mark Zuckerberg plans to sell 30.2 million shares in the IPO offering. This will net Zuckerberg about $1.1 billion.
  • May 18, 2012 - Facebook CEO Mark Zuckerberg opens Wall Street by ringing Nasdaq bell. The opening bell was rang remotely from Facebook headquarters at Menlo Park, California.

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