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 )
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