Rumoured Facebook IPO could see social network valued at $100 billion
Social giant Facebook is planning to launch an initial public offering (IPO) over the next few days according to numerous sources, with the firm's first floatation expected in May likely to raise as much as $10 billion.
Such a sum could value the company at anywhere between $75 billion and $100 billion, though the Financial Times claims Facebook could be hampered by the market's currently volatility and the 'failure' of previous IPOs by technology-based outfits.
Significantly, it's looking to float on the main New York Stock exchange rather than the tech-focused NASDAQ.
Gagging Google
"This has the feel of the Google IPO, coming at a time when the rest of the world is not in the midst of a great boom, but they are," Firsthand Technology Value Fund CIO Kevin Landis told the paper, making reference to Google's initial $1.9 billion offering in 2004.
"If the market looks weak when they start trading, theyll float a modest amount and wait to sell more later."
Facebook shares have already been changing hands in private secondary markets, though the IPO which it's been suggested could slip due to problems with the firm's regulatory filing would be the first step towards the social network becoming a publicly listed company.
Joining the big league
Even taking such issues into account, the Associated Press claims Facebook would still be named as one of the largest publicly listed companies in the world, competing with the likes of McDonald's and Amazon for a top spot.
In all, only the IPO's by 14 companies would outrank Facebook at current estimates.
Morgan Stanley is expected to be named as lead underwriter when the IPO is confirmed, with Goldman Sachs also likely to be involved.
[source: Financial Times]