Yes, you read that right. Get ready to own some bits of your ‘Social’ buddy soon. In a report from CNBC, the social networking website Facebook is all preparing documents for Initial Public Offer (IPO) in stock exchange. A big day!
A valuation is said to be around $100 billion & that’s a lot of cash!
Additionally it seems that internally there’s been some pressure from employees disheartened by their inability to sell their shares on the secondary market. This public offering, you should know, is not the first chance anyone in the world has had to own a bit of Facebook.
Recently SharesPost, a private exchange that buys shares of non-public companies, sold a bit of the company: 100,000 shares to be exact, for $3.4 million, putting Facebook’s total valuation at $85 billion.
Apparently, Facebook was valued at $50 billion before this March 2011.
The company’s IPO, were it to happen by next spring, would probably be triggered by a section of the 1934 Securities and Exchange Act known as “the 500 rule,” these people say.
Facebook, which has indicated that it expects to cross the 500-investor threshold this year, would probably want to launch a formal IPO in advance of a public-company reporting obligation that would kick in next April, say people familiar with the matter, making a first-quarter offering a likelihood.
Earlier this year Facebook curbed ability of the employees to be able to sell shares they own in secondary market to private investors and anyone still willing to sell them would have led them to leave the job.
But, with IPO coming – Facebook employees can sell / buy their part of the shares any time they would want.
It would be listed in NYSE and not in India! 🙂
Are you looking forward to this investment opportunity? let us know what you think 🙂