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Facebook IPO: Set At $28 To $35 Per Share

Ahead of Facebook's IPO allegedly set for 18th May, the news that investors and techies alike have impatiently been waiting for has finally arrived: Facebook has set a price range of $28 to $35 per share for its initial public offering.

With the sale of an impressive 337.4 billion shares, Facebook could raise anywhere between $5.04 billion and $6.3 billion for the company - as well as $4.41 billion to $5.51 billion for its investors.

Not impressed? Well how about this to blow your mind: Facebook's IPO would be the biggest for an Internet company - EVER.

Here's an excerpt from the filing:

"Facebook, Inc. is offering 180,000,000 shares of its Class A common stock and the selling stockholders are offering 157,415,352 shares of Class A common stock. We will not receive any proceeds from the sale of shares by the selling stockholders. This is our initial public offering and no public market currently exists for our shares of Class A common stock. We anticipate that the initial public offering price will be between $28.00 and $35.00 per share."

If Facebook reached the high end of the deal, this could raise as much as a staggering $11.8 billion - outdoing Google Inc's effort in 2004, when the search engine firm raised $1.9 billion.

Should Facebook be valued at $95 billion however, it will be marginally lower than online retail giant Inc., which currently sits at a comfortable $103 billion. But never fear, as Facebook will easily overtake other renowned worldwide businesses such as Kraft Foods Inc. and The Walt Disney Co.

Source: Business Week