Facebook IPO on Wednesday?

By siliconindia   |   Monday, 30 January 2012, 21:13 IST   |    1 Comments
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IPO wed

Bangalore: The most awaited IPO of this year, Facebook, could file the papers on this Wednesday with U.S. Securities and Exchange Commission (SEC), likely to make the social network among top 5 biggest debuts for a U.S. company.

According to the report from WSJ, Facebook had finalized Morgan Stanley for leading the deal, which could yield the financial services firm millions of dollars in banker fees.

Facebook could file documents as early as this Wednesday, said a person familiar with the matter. But the executives are also considering filing a few weeks later, the person said.

The IPO is expected to raise $10 billion and value the company between $75 billion and $100 billion, which will create a new generation of millionaires in the Silicon Valley. It will also make Facebook, the biggest U.S. internet IPO ever, replacing Google, which in 2004 raised $1.9 billion at a $23 billion valuation. A valuation of $100 billion will make Facebook to be worth same as McDonald’s Corp and nearly half of Google.

The website which is used by 500 million users daily had generated $3.8 billion world-wide advertisement revenue in 2011, according to a research from eMarketer.

The IPO will also test the ability of Mark Zuckerberg, CEO, in managing the global company, who always wanted his employees to concentrate on making great products, not the stock price.