Facebook IPO Facebook to raise $10.6 billion in IPO

Facebook plans to raise a whopping $10.6 billion as part of its initial public offering (IPO), making for one of the largest moves to go public in the technology industry.

Facebook plans to raise a whopping $10.6 billion as part of its initial public offering (IPO), making for one of the largest moves to go public in the technology industry.

 
The world's dominant social network suggested an IPO price for shares at between $28 and $35 today, which would bring in between $77 billion and $96 billion.
 
The figure is estimated to be $10.6 billion at the end of the day, but it could be as much as $12 billion if sales go well, or even a mind-staggering $13.6 billion if it clears shop.
 
These figures would give Facebook a market value similar to that of Amazon, which has grown beyond being just an online book store, including the success of its Kindle range.
 
Facebook IPO Facebook to raise $10.6 billion in IPO
 
Facebook's trading figure will be 13 to 16 times the revenue it is forecast to make this year, according to Max Wolff, an analyst for GreenCrest Capital. Google only trades at up to 6 times its current year's projected revenue, showing the considerable faith being put into the long-term investment strength of Facebook.
 
“We certainly haven't ever seen a tech IPO on this grandiose a scale,” said Lise Buyer from IPO advisory firm Class V Group, according to Reuters.
 
Early indications suggest that Facebook's stock will begin trading on 18 May.
 
Source: Reuters