NY Times:
After shying away from the public markets for years, Facebook is ready for its debut.
On Thursday, Facebook set the estimated price for its initial public offering at $28 to $35 a share, according to a revised prospectus. At the midpoint of the range, the social networking company is on track to raise $10.6 billion, in an debut that could value the company at $86 billion.
.The company is finalizing its prospectus, as it prepares for a road show to meet investors in cities like New York, Boston, San Francisco, Chicago, and Baltimore.
On Friday, Facebook executives will meet in New York with the sales forces of the company’s underwriters to brief them on the I.P.O. presentation, according a person with knowledge of the matter. Those salespeople will then reach out to prospective investors to begin shopping the offering.
The filing on Thursday is the first time Facebook has officially indicated where its shares will be valued. The company is expected to begin trading on the Nasdaq, under ticker “FB,” in two weeks, following an eight- to nine-day road show, according to people familiar with the matter. Given that time frame, Facebook should begin trading May 17 or May 18, these people added.
Investors have been eagerly awaiting the Facebook offering, which is on track to be the largest Internet I.P.O. on record, trumping the debut of Google in 2004. They are lured by the prospect of strong growth: in the first quarter, Facebook’s daily active users, a measure of engagement, increased by 41 percent, to 526 million.
Still, Facebook is experiencing the growing pains typical of a technology start-up. While revenue continues to rise, profit sputtered in the first three months of the year, falling 12 percent, to $205 million, as expenses jumped significantly.
A spokeswoman for Facebook declined to comment.
After shying away from the public markets for years, Facebook is ready for its debut.
On Thursday, Facebook set the estimated price for its initial public offering at $28 to $35 a share, according to a revised prospectus. At the midpoint of the range, the social networking company is on track to raise $10.6 billion, in an debut that could value the company at $86 billion.
.The company is finalizing its prospectus, as it prepares for a road show to meet investors in cities like New York, Boston, San Francisco, Chicago, and Baltimore.
On Friday, Facebook executives will meet in New York with the sales forces of the company’s underwriters to brief them on the I.P.O. presentation, according a person with knowledge of the matter. Those salespeople will then reach out to prospective investors to begin shopping the offering.
The filing on Thursday is the first time Facebook has officially indicated where its shares will be valued. The company is expected to begin trading on the Nasdaq, under ticker “FB,” in two weeks, following an eight- to nine-day road show, according to people familiar with the matter. Given that time frame, Facebook should begin trading May 17 or May 18, these people added.
Investors have been eagerly awaiting the Facebook offering, which is on track to be the largest Internet I.P.O. on record, trumping the debut of Google in 2004. They are lured by the prospect of strong growth: in the first quarter, Facebook’s daily active users, a measure of engagement, increased by 41 percent, to 526 million.
Still, Facebook is experiencing the growing pains typical of a technology start-up. While revenue continues to rise, profit sputtered in the first three months of the year, falling 12 percent, to $205 million, as expenses jumped significantly.
A spokeswoman for Facebook declined to comment.
