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Facebook increases IPO size by 25 percent

Facebook has added nearly 25 percent to its initial public offering (IPO), which could raise funds of up to a whopping $16 billion, much more than originally expected.

Facebook has added nearly 25 percent to its initial public offering (IPO), which could raise funds of up to a whopping $16 billion, much more than originally expected.

 
Strong demand by investors encouraged the world's dominant social network to increase the amount of shares on offer when it goes public on Thursday.
 
A total of 421 million shares are expected to go on sale, 84 million more than planned, and even this huge number might not be enough to meet demand. These additional shares will be sold by early investors, rather than the company itself.
 
 
Despite the public ownership of a good chunk of the company, Facebook founder Mark Zuckerberg will retain voting power of 55.8 percent, giving him a small majority control. His percentage was originally expected to be 57.3 percent.
 
Initial estimates for Facebook's IPO were around $10.6 billion, with a liberal estimate of $13.6 billion if investors went mad for Facebook shares. It looks like the frenzy to grab a slice of the social network's pie has gone well beyond that, however, with the company more likely to bring in $16 billion. In contrast, search giant Google only pulled in around $2 billion with its IPO in 2004.
 
Source: Reuters

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