Today is the day when Facebook may be submitting all the required paperwork to regulators for its $5 billion initial public offering. According to a source close to the deal, Facebook has selected Morgan Stanley, along with four others - Bank of America Merrill Lynch, Goldman Sachs, JP Morgan and Barclays Capital, to handle this IPO.
Morgan Stanley will be taking "lead left" role in what is thought to be the biggest IPO from Silicon Valley. According to International Financing Review, the preliminary target of $5 billion could be increased greatly in the coming months in response to the demand of investors.
Sources close to this matter think this might turn out to be a defining moment for current web investments. The deal might rise to $10 billion which eventually will make Facebook a social networking empire valued between $75 billion and $100 billion. In fact, $75 billion is definitely an undervaluation compared to previous expectations, the Wall Street Journal reports.
Morgan Stanley, which will be leading the deal, will make tens of millions of dollars in banking fees besides getting potential new business as well as bragging rights. Morgan Stanley's rival financial institution Goldman Sachs Group will be playing an important role in this deal too, confirmed the source.
However neither Facebook nor Morgan Stanley or Goldman Sachs Group has officially confirmed any of these claims.