SecondMarket, a stock exchange for private companies, has reported that the price of Facebook Inc’s stocks has risen by 42% in the past four months as the membership of the site crossed the 300 million users mark.
Adam Oliveri, the Managing Director of SecondMarket has said that Facebook shares are currently soaring at $21 in the private stock exchange from $14.77 in July. Currently Facebook stocks are valued at $9.5 billion. SecondMarket allows current and former Facebook employees to sell shares.
Paul Bard, an analyst at Renaissance Capital LLC, predicted that Facebook may soon sell its stock through an IPO in 12 to 18 months time.
The Facebook IPO, if initiated, may go the Google way, experts have predicted. Google had sold 19.6 million shares for $1.67 billion in August 2004, giving the company a market value of $23 billion.
Scott Sweet of IPO Boutique said that the private companies like Facebook and Twitter use the private stock exchange to find out the level of interest in their stocks.
Digital Sky Technologies, a Russia based company, is investing $200 million in Facebook in May of next year. This news has boosted the expectations for a Facebook IPO. In 2007, Microsoft Corp. bought a 1.6 percent stake in Facebook that valued the company at $15 billion.
However, Mark Zuckerberg, CEO of Facebook who had founded the company when he was studying in Harvard commented that he expects the IPO of the company in May though he was not focused on it.