It is one of the fastest growing companies in the world, and now Facebook has announced that it is raising $10 billion in stock, which would make this the biggest Internet IPO since Google with a price of $28 to $35 a share.
Facebook filed with the Securities and Exchange Commission on Thursday afternoon, stating it will sell 337 million shares. The share price range could value the company from $77 billion to $96 billion, the Wall Street Journal reported.
In the build-up of events leading to the initial public offering of its stock, what happens next is the “road show” where potential buyers get the chance to ask questions, and when most investors lurk for some reactions.
These events are by invitation only. Small fry need not attend. You could donate all your organs at once, right there at the door, and still not get in.
Scott Sweet, managing partner of IPO Boutique, which tracks IPOs, predicts that the road show “will attract a huge amount of attendees at every location. I believe not only will there be standing-room-only, but people will be turned away. Only about 200 people per city get invited.”
The kickoff of the tour could come Monday, assuming Facebook completes the necessary SEC filings. A Monday start would then establish a date of May 17 or 18 for share trading. The company is legally forbidden from saying much about the tour before the SEC blesses it, so, at the moment, knowing which managers will hit the road remains a guessing game.
Facebook’s biggest road show challenge will be to convince investors that it can do a better job of monetizing its millions of users — a problem that can get dicey.