Facebook raises opening stock price for IPO–reports
Facebook CEO Mark Zuckerberg. (AP Photo/Paul Sakuma, File)
SAN FRANCISCO, California – Facebook has bumped up the price it planned to charge for shares at is stock market debut, giving the leading social network a value that could top $100 billion, according to reports on Monday.
Facebook will price its initial public offering (IPO) from $34 to $38 per share instead of the $28 to $35 range indicated in paperwork filed earlier this month with US regulators, according to CNBC and The Wall Street Journal.
The raised IPO share price reflected confidence in demand for Facebook stock and gave the Menlo Park California-based company a value between $93 and $104 billion.
At the higher end of the price range, Facebook would raise nearly $15 billion through the stock sale, with a large chunk of the cash going to its early backers and employees compensated with stock.
Facebook was already assured of becoming the social network the most valuable US Web company at the time of an IPO, topping Google’s $23 billion valuation in 2004.
Facebook will trade under the symbol “FB” on the technology-heavy Nasdaq. Trading was expected to be launched May 18, according to news reports.
Under a dual-class stack structure, Facebook founder and chief executive Mark Zuckerberg will retain 57.3 percent of the voting power of the shares.
