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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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