facebooklogo Facebook to file $5 billion IPO

Facebook is to file an initial public offering request worth $5 billion today, a move which will set it on the road to becoming a public company.

Facebook is to file an initial public offering request worth $5 billion today, a move which will set it on the road to becoming a public company.

 
The social network, which has over 800 million users, will offer shares for sale in May, according to Reuters, with its $5 billion preliminary target being the largest ever offered by a technology firm, easily surpassing Google's $2 billion IPO in 2004. That high price could also go up further, depending on investor demand.
 
Facebook selected five bookruners to handle the IPO, led by heavyweight Morgan Stanley. The others are Goldman Sachs, Bank of America Merrill Lynch, Barclays Capital, and JP Morgan. Other underwriters could join this illustrious group in future.
 
facebooklogo Facebook to file $5 billion IPO
 
Speculation about a Facebook IPO has been mounting for months, with many investors keen to get a slice of the action in what many consider to be a very lucrative company. While other technology IPOs have been a hit and miss affair, Facebook is generally seen as almost a guaranteed success.
 
The outcome of the deal will be watched closely by other social networks, such as Twitter, Myspace and Bebo, all of which continue to trade privately. Rumours are circulating that Twitter could file an IPO as early as 2013.
 
Source: Reuters