Facebook To Raise $10bn In Biggest IPO Since Google
Facebook is today expected to begin the process of being a public company in the biggest tech IPO since Google.
The firm is hoping to raise $10bn selling shares in an initial public offering (IPO) that will value the firm at between $75bn - $100bn, according to reports.
The filing, to be lodged with the Securities and Exchange Commission, will give outsiders their first chance to get an intimate look inside the company, says CBS news, including its revenue and earnings growth, plans for sustainability and risks to shareholders.
A stock usually starts trading three to four months after the filing.
While Facebook has refused to confirm the IPO, investors and specialists are expecting some sort of twist when it does file - perhaps even a provision for the 800million users of the site to get in on the action.
Carols Kirjner, an analyst at Sanford Bernstein, said: "Everyone is looking forward to learning more about the specifics of the business in an attempt to understand how Facebook will have an impact on the Internet."
"Pandemonium is what I expect in terms of demand for this stock," Scott Sweet, senior managing partner at IPO Boutique, an advisory firm told AP. "I don't think Wall Street would want to anger Facebook users."
Morgan Stanley will take the lead in arranging the IPO, with Goldman Sachs Group Inc, JPMorgan chase & Co, Barclays Plc and Bank of America Corp will also help with the sale, according to Bloomberg.
The floatation is set to dwarf Google's $1.9billion initial public offering in 2004.
Chief executive Mark Zuckerberg founded Facebook in 2004 from a Harvard dorm.