Chillin' out till it needs to be funded
Facebook’s FB ticker has decided to list itself on NASDAQ as it fills the final blanks on its IPO registration statement, The company would not be joining the likes of Pandora, TripAdvisor and Yelp who made success stories on the NYSE. Facebook would be one of the largest IPOs on the NASDAQ even at the current watermark of $5 bln, which is not sacrosanct. Apple already enjoys an almost 30% weightage in the NASDAQ 100 index. FB though not on the Index 100 would be big enough to be considered in the next change of the index. Google is the other heavyweight on the NASDAQ and that may have swayed Mark Zuckerberg’s decision. Linked In actually chose to list on Euronext. The NASDAQ 100 index almost moves to the daily sentiment of just Apple because of the Tech’s $600 bln valuation as it keeps ticking up to a $1000 price/ $1 Tln Market Capitalisation (@ $1100) Microsoft is N o. 2 on the NASDAQ ahead of Google and Intel.
The decision, communicated after hours, joins in with Zynga, Facebook’s close friend and tied associate on the portal that contribute 90% of Facebook’s social media gaming revenue. Facebook would pay a fat listing fees to the NASDAQ. Both NASDAQ and NYSE are listed exchanges. Bloomberg lists Infeneon from 2000 as the biggest tech offering, Facebook already ahead of Google by miles in comparable revenue, growth and probably its performance on the NASDAQ for its followers backing to a $100 bln valuation before shares stopped trading ahead of the new JOBS Act and the IPO in May
NASDAQ had more than $1.5 bln in revenues in 2011, less than half that of Facebook. The Google IPO raised $2 bln at a $23 bln IPO valuation on the NASDAQ in 2004. Facebook could easily raise $10 bln. Visa, General Motors and AT&T Wireless have all raised more than $10 bln in IPOs (WSJ)
Anyway, the big deal would be the movements after the Facebook listing on NASDAQ giving a new retail lifestyle push to the “Tech” bellwether and interesting equations of love and war between Apple and Facebook, Apple and Google, Facebook and Google while NYSE plays with HP vs IBM and JP Morgan vs the rest on the “Big board”.