Facebook Aiming For $100 Billion IPO in Early 2012: Report

Jun 14 2011

Facebook, the dominant internet social networking company, is making plans to go public early next year at a vertigo-inducing valuation of over $100 billion, CNBC reported Monday. The Palo Alto-based web phenom could file registration papers with the Securities and Exchange Commission as early as October.

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Wall Street titan Goldman Sachs, which managed a $1.5 billion dollar private placement in Facebook shares for non-U.S. investors earlier this year, is “leading the chase” to manage the offering.

Goldman Sachs, the premier investment bank on Wall Street, is accustomed to taking the lead slot on such pricey offerings, which usually involve as many as half-a-dozen banks or more. As underwriters, Goldman and the other banks are allocated chunks of pre-IPO shares for their hedge fund and institutional clients, many of which sell their shares at the open for a tidy gain.

In January, Facebook said it expected to cross the critical 500-shareholder mark this year, and if it finishes 2011 over the line, it must file quarterly and annual reports with the SEC within 120 days after the end of the year. At the time, Goldman, which had invested $450 million in Facebook, said the company was worth $50 billion.

Read the rest of the article and more from Wired at Facebook Aiming For $100 Billion IPO in Early 2012: Report


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