OMG, OMG, O-M-G! IPO, IPO, I-P-O! FB, FB, F-B! We are just a few days away from the expected historical day where the social networking super-dragon-giant-cyclop Facebook will go public and the craziness is now on its peak. I-N-S-A-N-E.
For the last couple of weeks every website/blog/forum/other online entity with just the slightest tech orientation, has been offering a constant news flow and sometimes just silly rumors, about Mark’s little plaything right before the most anticipated public offering since Google’s 2004. (or maybe even more?)
So, as a tech oriented site here’s what is currently known about this bombastic event:
The company has received its long-awaited approval from the authorities to go public. There wasn’t any official announcement about it, but yesterday the company filed its form 8-A which states that the company’s shares are approved for publicly trading under the “FB” symbol on the NASDAQ, which will probably happen on Friday the 18th.
But What really became more interesting (to the joy of existing investors and employees holding options) is the high probability of raising the price range to $34-$38 a share, which will grant the company a valuation of more than $100 billion if the price share will reach for its top range. CNBC was first to break the news in a Tweet:
BREAKING NEWS: Facebook revising range to $34-$38; expected to refile with with new range tomorrow – Source (via @KateKellyCNBC)
— CNBC (@CNBC) May 14, 2012
Previously, Facebook evaluated its share price for about $31 a share so this is a pretty significant increase. It seems that the folks that runs the IPO (the group of underwriters and the company itself) are sensing there’s such a huge demand from investors that not only they raised the share’s price range but also may put out more shares…
TechCrunch’s Josh Constine reports that the company may decide to sell additional approximate 51 million shares to answer the high demand and to prevent too volatile trading movements. All those changes will require the company to file a new amendment to the S-1 form, which will probably arrive today or tomorrow.
All those events are also showing that people aren’t occupied with the recent reported FTC probe about the $1 billion acquisition of Instagram by the company, which may delay the finalization of the deal by 6-12 months.
Alright, after we’re done with the serious stuff it’s time for a little more piquant news. Michael Pachter, an analyst at Wedbush Securities, told Bloomberg that the fact Mark Zuckerberg is wearing a hoodie when meeting with potential future investors is a “mark of immaturity”.
Is it a sign of immaturity if I’ll say that it appears that most future potential investors don’t really gives a fu*k?
Update: Facebook officially filed a new S-1 form (amendment no. 7) where the company confirms the price range will be $34-$38 a share and it will try to raise $14.74 billion. It will also offer additional 50.6 million shares to a total of 388 million shares.