Chillin' out till it needs to be funded
Latest S-1 (S-1/A) filed with SEC http://www.sec.gov/Archives/edgar/data/1326801/000119312512208192/d287954ds1a.htm
The news is Mark zucked’rberg is not very camera friendly. The Roadshow shmoozing got off to a rocky start in front of the Sheraton ( Midtown Manhattan) as Zuckerberg turned up late with CFO Sheryl Sandberg making excuses for him. According to the networks, investors left in a huff after their questions went unanswered. The $10 bln IPO gives Facebook a $77 bln to $96 bln range in Capitalization for a $28 – $35 price range and lists May 17th. Only $5 bln is earmarked for the company while the rest goes to investors taking their profits in the IPO sale.
It may have been the tax bill as the Founder CEO pays $903 mln for his take in the Facebook IPO. Meanwhile, estimates giving the IPO a 40% pop are out and likely Facebook will first aim to equal Amazon then take on Apple’s challenge as a fellow of the NASDAQ 100 index in three months. A Reuters calculator in the meantime ( published at FT Alphaville) outs the valuation as a result of continuing 60% sales growth thru the next 5 years. If the valuation assumes a more just 20% Sales growth for bigger elephants without the mojo, as it seems to be, that could mean the shares will drop nearly $10 on opening day. Also the Elephant Gun wielding Warren Buffet would not be hunting Facebook this season as he comes to terms with how to value potential of online phenomenon like Amazon and Facebook.
Also, in a twisted way Zuckerberg is trying to do more to stay close to Facebook addicts and Retail investors with an underwriting ‘seat’ for E*Trade, the retail stockbroker online which will allow E*Trade to sell it directly to investors, seemingly. retail investors are otherwise hoping for a strawman collapse of the listing so they can buy their way in for the KABOOM