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Facebook IPO (FB)

Facebook IPO (FB) The IPO Facebook is experiencing is the largest IPO in history! Shares for public consumption in the 2ndary market opened at $42.05 and hit a high of $45 before rolling over.

IPO

Facebook filed for an initial public offering on February 1, 2012. The preliminary prospectus stated that the company was seeking to raise $5 billion. The document announced that the company had 845 million active users and its website featured 2.7 billion daily likes and comments. After the IPO, Zuckerberg will retain a 22% ownership share in Facebook and will own 57% of the voting shares.

Facebook valued the shares at $38 each, pricing the company at $104 billion, the largest valuation to date for a newly public company. On 16 May, one day before the IPO, it announced that it would sell 25% more shares than originally planned due to high demand. The IPO raised $16 billion, making it the third largest in U.S. history (just ahead of AT&T Wireless and behind only General Motors and Visa). The stock price left the company valued higher than all but a few U.S. corporations - including Amazon, McDonald's, Disney, and Kraft - and made Zuckerburg's stock worth $19 billion. The New York Times stated that the offering overcame questions about Facebook's difficulties in attracting advertisers to transform the company into a "must-own stock". Jimmy Lee of JPMorgan Chase described it as "the next great blue-chip". Writers at TechCrunch, on the other hand, expressed skepticism, stating, "That's a big multiple to live up to, and [Facebook] will likely need to add bold new revenue streams to justify the mammoth valuation".