Friday, May 18, 2012

Facebook's Initial Public Offer


Facebook is set to initiate its initial public offering, which has a target valuation on the social-media giant of up to $100 Million.




The IPO is said to be coming within the next few days, with some dates mentioned for the IPO were in late May or early June. The reason there could have been delays for the IPO was because of Facebook’s $1 billion recent acquisition of Instagram and its deal with Microsoft.

Estimates for Facebook shares are being cited at between $28 and $35 per share. 
Some 337.4 million shares are expected to be sold.

Facebook will price its offering on May 17 after the markets close and open for selling on May 18. Facebook says it plans to raise as much as $12 billion from the IPO although more recent estimates are for $10.6 billion.

When a firm like Facebook goes public the company falls under the guidelines of the SEC. It's already doing so by applying for an IPO as financial filings like the one mentioned above, have to take place.

After the IPO has taken place, 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.

Time will tell, but all indications are that the stock will be highly sought after and traded.

Until next time, good luck and good marketing.

Daniele.

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