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Facebook Increases IPO By 25 Per Cent, Could Reach $16 Billion

Facebook has yet again updated its filing for an IPO, making it the eighth time since initially filing the paperwork back on 1st February. Upping the number of shares by 25 per cent, this could result in Facebook raising as much as $16 billion (£10.1 billion) - adding roughly 84 million shares to its IPO, bringing the total offering to 421 million shares.

The growth indicates strong demand by investors, following the news that Facebook had increased the price range for the stock to between $34 and $38 per share, up from the previous $28 to $35.

In a filing with the Securities and Exchange Commission, the social network says that the additional shares being made available are coming from its current shareholders. The selling shareholders are now offering an estimated 241 million shares, an increase from the previous 157 million shares.

However, Facebook won't receive any proceeds from the stock sold by the selling shareholders, and Zuckerberg's voting power will now go down to 55.8 per cent from 57.3 per cent after the IPO, due to the additional shares.

It's expected that Facebook will begin trading on the Nasdaq this week under the "FB" ticker, with shares to be priced today and trading to take place tomorrow.

Source: ZDNet