The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Did you get the Facebook Mandate, Mr Banker | Advantage Dealbook

Though the announcement may get in to January as geek lord Mark Zuckenburg tries to decide himself if he prefers Goldman Sachs and Morgan Stanley or any other to lead its IPO. According to the grapevine ( and NY Times, all did not go well with Goldman Sachs during the private placement where SEC was likely to come down on it for having advertised its offer to US investors, a not very endearing act for their Goldman Sachs relationship.

According to the Goldman Sachs’ offer document / email for the placement it has already earned $50 mln from retail investors alone and the IPO could bring in another $220 mln for the lead bankers, more for those who underwrite the likely $10 bln IPO, in a rush to come live with Facebook reaching 500 shareholders’ limit and SEC encouraging it to make public disclosures like a public company since the private placement 12 months back

Goldman Sachs ahas also purchased $450 mln worth of Facebook at the time of the placement in its own asset management fund and sold $500 mln worth to Yuri Milner’s DST Technologies from Russia

If Morgan Stanley does not get a lead role, it could easily lose this years #! mantle in Equities IPOS for Internet companies having managed $1.83 bln to Goldman Sachs $1.15 bln China beat them both though in the $16 bln worth of IPOs in 2011 ( till October from Thomson reuters lists at markets.ft.com)

What could stick out for Goldman Sachs again is its propensity to make wrong bets in the three years of the crisis in the Private wealth and asset management business from healthcare to contrary bets ofn Gold and Copper as trading winds down for the firm and Mark Zucenberg may just be lookign for an out this time.

 

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