Facebook IPO likely to outshine nearly every other public company on the planet

World’s most popular social networking site, Facebook that began eight years ago in a Harvard dorm room is set to start trading today around 8 am Pacific Time Friday on the Nasdaq exchange under the symbol “FB.”  Facebook Inc (NASDAQ: FB) had decided to sell 421,233,615 shares of its common stock at $38 per share.

The social network increased the size of its initial public offering by almost 25 percent and could raise as much as $16 billion. In its highly anticipated initial public offering that valued the company at $104 billion, more than Amazon.com or Kraft or Walt Disney even McDonald’s.

In a most talked-about market debut, Facebook valuation makes it 3rd highest in an IPO, only two Chinese banks, Agricultural Bank of China ($133 billion) in 2010 and Industrial and Commercial Bank of China ($132 billion) in 2006, have been worth more.

Morgan Stanley, J.P. Morgan, Goldman, Sachs & Co., BofA Merrill Lynch, Barclays, Allen & Company LLC, Citigroup, Credit Suisse and Deutsche Bank Securities are serving as book runners for the offering. RBC Capital Markets and Wells Fargo Securities are serving as active co-managers.

As an iconic brand of the Internet age, with more than 900 million users worldwide, “Facebook is something that almost everyone might want to have a piece of in their portfolio,…. The decision to offer more shares, gives a larger group of investors a chance buy into the company”, said William Sahlman , a Harvard Business School professor.

  • Facebook priced its IPO at $38 per share
  • Facebook has more than 900 million users
  • Facebook had net income of $205 million in the first three months of 2012 and revenue of $1.06 billion
  • Facebook earned $1 billion in all 2011 and $606 million in 2010
  • Facebook grew profits 65 percent last year
  • The social network is now more valuable than Ford Motor Co. and General Motors Co. combined.

In investing – hype is the enemy. How much do you think $104 billion social network, Facebook is worth on Wall Street?

Have a look at slideshow (below) to see how Facebook’s IPO compares to the biggest Internet IPOs in last 10 years.

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Amarendra Bhushan

CEO and Editorial Director at CEOWORLD Magazine
Amarendra is the Chief Executive Officer and Editorial Director at CEOWORLD Magazine, and is responsible for all business management, company operations, finance, and social advertising operations.
Email- amar@ceoworld.biz
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About the Author
Amarendra Bhushan

Amarendra is the Chief Executive Officer and Editorial Director at CEOWORLD Magazine, and is responsible for all business management, company operations, finance, and social advertising operations. Email- amar@ceoworld.biz

Email: amar@ceoworld.biz