Facebook's IPO price range is now final, and there will be no amendments to it on Thursday, a source tells CNBC.
This means that the company and its underwriters will be working with its current price range of $34 to $38.
Under the U.S. Securities and Exchange Commission's rules, Facebook can still price up to 20 percent above that range with $45 representing an absolute maximum.
The company is expected to price its IPO on Thursday and begin trading on Friday.
This means that the company and its underwriters will be working with its current price range of $34 to $38.
The company is expected to price its IPO on Thursday and begin trading on Friday.
Thought:
Survey showed that fifty percent of american thinks that Facebook is a passing fad, means it is just enthusiasm about it which will fade soon. But Mr Mark Zuckerberg dreaming it as a big hit and offering price has raised today. Facebook will show ad to the users to earn revenue, but question is " Is there somebody out there who knows computer, internet, social network and still don't have facebook ID? From where the new users will keep joining facebook and how many are those left? Will all the users spend equal or more time day by day, will it be so interesting day by day? Read Why Facebook is a Sell
Survey:
The company Mark Zuckerberg created as a Harvard student eight years ago is preparing for what looks to be the biggest Internet IPO ever. Expected later this week, Facebook's Wall Street debut could value the company at $100 billion, making it worth more than Disney, Ford and Kraft Foods.
That's testament to the impressive numbers Facebook has posted in its relatively brief history. More than 40 per cent of American adults log in to the site -to share news, personal observations, photos and more- at least once a week. In all, some 900 million people around the world are users. Facebook's revenue grew from $777 million in 2009 to $3.7 billion last year. And in the first quarter of 2012 it was more than $1 billion.
Just a third of those surveyed think the company's expected value is appropriate, 50 per cent say it is too high. Those who invest in the stock market are more likely to see Facebook as overvalued, 58 per cent said so. About 3 in 10 investors say the expected value of shares is fair.
But price worries won't necessarily stop would-be investors. Half the people surveyed say they think Facebook is a good bet, while 31 per cent do not. The rest aren't sure. Americans who invest in stocks roughly agree, although investors who are more "active" - those who have changed their holdings in the past month -are more negative. Nearly 40 per cent say Facebook would not be a good investment.
Young adults, a majority of whom log on to Facebook daily, are more willing to dance to their hoodie-wearing piper, 28-year-old CEO Mark Zuckerberg. Among Zuckerberg's peers, adults under age 35, 59 per cent say Facebook is a good bet. Compare that to the views of senior citizens: Only 39 per cent age 65 and over say Facebook shares are a good investment. Nearly half of Gen X'ers (ages 35-44) say the company is a good bet, as do 55 per cent of middle-aged people.
Those under 35 are the generation most interested in Facebook's IPO because they've grown up immersed in the social network. They were the first users, logging in from their college dorm rooms. Later, Facebook expanded to allow high school-age and even younger students to sign up. It's become an integral part of their lives, giving them a launching pad to spread the news of life's major developments through posts and pictures.
Conversely, it's the rare senior citizen on Facebook: Just 21 per cent have an account. Half of baby boomers - the generation born in the years after World War II - have one. But most of the 56 per cent of the country that's on Facebook is young - two-thirds of Gen X'ers and a staggering 81 per cent of people 18-35 use the social networking site.
Young people aren't just connected. They are constantly tethered to smartphones, tablets and notebook computers. Even with the rise of alternative social networks like Twitter and Google Plus, 55 per cent of Zuckerberg's peers go on Facebook every day. A third log on several times a day. Despite the intensity of their use, a narrow majority of young adults predict Facebook's appeal will fade down the road (51 percent), fewer think it will stick around as a service (44 percent).
The public overall is similarly divided on the company's future. Just under half of adults (46 percent) predict a short timeline for Facebook, while 43 per cent say it has staying power.
Young people are more aware of Zuckerberg and have more positive views of the CEO, who celebrated his 28th birthday on Monday. Overall, one in five Americans say they've never heard of him, 30 per cent don't have an opinion and 14 per cent plain don't like him. Only about a third have a good impression of the CEO, who has alienated some with Facebook's ever-changing approach to user privacy.
But 46 per cent of people under 35 like him. And a scant 4 per cent of those younger adults say they've never heard of him.
The privacy issue is a stinger. Three of every five Facebook users say they have little or no faith that the company will protect their personal information. Only 13 per cent trust Facebook to guard their data, and only 12 per cent would feel safe making purchases through the site. Even Facebook's most dedicated users are wary - half of those who use the site daily say they wouldn't feel safe buying things on the network.
As for how Facebook makes most of its money -selling ads- 57 per cent of users say they never click on them or on Facebook's sponsored content. About another quarter say they rarely do.
Despite user discontent about privacy, Facebook and Zuckerberg have connected with many Americans. The survey suggests that his reputation and youth seem more like assets than liabilities. For those who have heard of the CEO, two-thirds are at least somewhat confident in his ability to run a large public company. Twenty-two per cent doubt he can handle the leadership role. As for the social network he created, 51 per cent of Americans clicked "Like."
The Associated Press-CNBC Poll was conducted May 3-7, 2012 by GfK Roper Public Affairs and Corporate Communications. It involved landline and cell phone interviews with 1,004 adults nationwide and has a margin of sampling error of plus or minus 3.9 percentage points.
Facebook Inc. (FB)’s initial public offering has so far generated lower-than-expected demand from institutional investors who are concerned about the company’s growth prospects, people with knowledge of the matter said.
| Facebook Inc |
Facebook executives have another week to market the IPO, scheduled to price on May 17, and underwriters are stepping up efforts to drum up interest from large shareholders, one person said. Underscoring concerns that growth may taper for the world’s biggest social network, 79 percent of respondents in the Bloomberg Global Poll of 1,253 investors, analysts and traders who are Bloomberg subscribers said Facebook doesn’t deserve a valuation at $96 billion, the high end of its projected range.
“Expectations on Facebook are way too high,” said Mitsuo Shimizu, a market analyst at Tokyo-based Iwai Cosmo Securities Co. “Given its fundamentals, the company doesn’t look anywhere cheap in valuation.”
Lackluster interest from institutional investors at this stage could compel the company to rely more on buying from retail investors, from whom demand remains robust, people said. The company could still elicit enough demand to sell shares at or above the high end of a projected range, people said.
Slackening Growth
Institutional investors tend to hold shares longer than retail investors, lessening a stock’s volatility.
Chief Executive Officer Mark Zuckerberg plans to raise as much as $11.8 billion through the IPO, the biggest in history for an Internet company.
The Menlo Park, California-based company is seeking a market value of as much as $96 billion, and is offering 337.4 million shares at $28 to $35 each. The shares will be listed on the Nasdaq Stock Market under the symbol FB. Morgan Stanley (MS), JPMorgan Chase & Co. (JPM) and Goldman Sachs Group Inc. (GS) are leading the sale.
Facebook is offering 180 million shares, while existing owners such as Accel Partners, Goldman Sachs and Digital Sky Technologies are offering 157.4 million shares. Zuckerberg is offering 30.2 million of his 533.8 million shares, and may control 57.3 percent of the voting power of Facebook’s capital stock outstanding after the offering, regulatory filings show.
Jonathan Thaw, a spokesman for Facebook, didn’t respond to a request for comment.
Facebook, co-founded by Zuckerberg in 2004 in a Harvard University dorm room, seeks a valuation at 24 times revenue, compared with 5 times for Google Inc., according to data compiled by Bloomberg.
Already the company’s growth has shown signs of slackening. Sales climbed 88 percent to $3.71 billion last year. According to researcher EMarketer Inc., revenue may increase 64 percent to $6.1 billion this year. That would be the third straight year of slowing growth.
Read Why one should sell Facebook instead of buying it?
Read Why one should sell Facebook instead of buying it?
Facebook is set to raise capital with its upcoming initial public offering, which has a target valuation on the social-media giant as high as $110 billion.
Here are the detailed analysis of some figures.
When will the IPO take place?
All reports point to May of this year. Dates of May 17 or May 24 have been mentioned by people close to the matter.
Bankers and Facebook management are currently looking at a target date of May 16 or May 17 to price the deal — with trading commencing the following day.
What might push the deal back to May 24 is Facebook’s recent $1 billion acquisition of Instagram. The Securities and Exchange Commission has to okay the deal, and while that’s expected there could be some unforeseen complications that push the May 17 date back a week or so.
Facebook filed for its IPO on Feb. 1, 2012.
How much will shares of Facebook cost?
Recent transactions on the private market put estimates of the price of a single Facebook share at between $38 and $40.
What exchange is Facebook going to list on?
Facebook has chosen the Nasdaq over the New York Stock Exchange. The NYSE is widely seen as the home of the traditional “blue chip” company, while the Nasdaq’s reputation is more associated with Silicon Valley — and more to Facebook’s image.
Who is handling the IPO for Facebook?
Some 31 banks are advising on the deal, but the main players are Morgan Stanley, JPMorgan,Goldman Sachs, Bank of America, Barclays and Allen & Company.
How much money is Facebook expected to raise with the IPO?
At least $5 billion, according to most analysts’ estimates. That would make it the largest Internet-related IPO on record.
When can investors jump in to buy Facebook stock?
The moment the stock debuts on the Nasdaq.
However, many market experts say that the problem with immediately jumping into an IPO is that insiders, such as hedge fund managers, are buying up shares that push up the price.
Normal traders are advised to wait for a couple of days for the stock price to settle back down.
The General Motors IPO of two years ago is cited as a recent example of seeing a stock price initially go up $6 or $7 higher than the IPO the first day, and then settle back down a day or two later.
How big and profitable is Facebook?
The eight-year-old firm has more than 840 million members, and nearly half a billion people around the world log into Facebook every day, according to the latest statistics.
Facebook had revenues of $3.8 billion in 2011, with an operating profit of $1.5 billion.
What happens legally when a firm like Facebook goes public?
The company falls under the guidelines of the SEC.
Facebook will have to follow disclosure rules like holdings and transactions of insiders or the officers and directors of the company. It will have to disclose its financial status on a regular basis and come under surveillance by the SEC on its trading practices. And of course — it will have to hold shareholder meetings.
( Source : CNBC )
Here are the detailed analysis of some figures.
When will the IPO take place?
All reports point to May of this year. Dates of May 17 or May 24 have been mentioned by people close to the matter.
Bankers and Facebook management are currently looking at a target date of May 16 or May 17 to price the deal — with trading commencing the following day.
What might push the deal back to May 24 is Facebook’s recent $1 billion acquisition of Instagram. The Securities and Exchange Commission has to okay the deal, and while that’s expected there could be some unforeseen complications that push the May 17 date back a week or so.
Facebook filed for its IPO on Feb. 1, 2012.
How much will shares of Facebook cost?
Recent transactions on the private market put estimates of the price of a single Facebook share at between $38 and $40.
What exchange is Facebook going to list on?
Facebook has chosen the Nasdaq over the New York Stock Exchange. The NYSE is widely seen as the home of the traditional “blue chip” company, while the Nasdaq’s reputation is more associated with Silicon Valley — and more to Facebook’s image.
Who is handling the IPO for Facebook?
Some 31 banks are advising on the deal, but the main players are Morgan Stanley, JPMorgan,Goldman Sachs, Bank of America, Barclays and Allen & Company.
How much money is Facebook expected to raise with the IPO?
At least $5 billion, according to most analysts’ estimates. That would make it the largest Internet-related IPO on record.
When can investors jump in to buy Facebook stock?
The moment the stock debuts on the Nasdaq.
However, many market experts say that the problem with immediately jumping into an IPO is that insiders, such as hedge fund managers, are buying up shares that push up the price.
Normal traders are advised to wait for a couple of days for the stock price to settle back down.
The General Motors IPO of two years ago is cited as a recent example of seeing a stock price initially go up $6 or $7 higher than the IPO the first day, and then settle back down a day or two later.
How big and profitable is Facebook?
The eight-year-old firm has more than 840 million members, and nearly half a billion people around the world log into Facebook every day, according to the latest statistics.
Facebook had revenues of $3.8 billion in 2011, with an operating profit of $1.5 billion.
What happens legally when a firm like Facebook goes public?
The company falls under the guidelines of the SEC.
Facebook will have to follow disclosure rules like holdings and transactions of insiders or the officers and directors of the company. It will have to disclose its financial status on a regular basis and come under surveillance by the SEC on its trading practices. And of course — it will have to hold shareholder meetings.
( Source : CNBC )
