Chillin' out till it needs to be funded
Facebook’s self effacing roadshow trudge seems to have thrown quite a leg with Zuckerberg’s dream project taking off to a larger Capitalisation target ahead of Friday’s open. Earlier the company had upgraded its IPO range to $34-$38 making itss $104 bln IPO at the top of the range. Now the firm has further increased the number of shares on offer in the IPO to 421 mln from the earlier 337 mln making it contest for the largest Global IPO tag than just the largest Internet IPO earlier with a $15 bln take at the top of the range
Goldman Sachs and Tiger Global will be getting out of another $3 bln of their holding making their post IPO holdings 50% of what they undertook in the pre IPO firm. Yuri milner’s two companies mail.ru and DST Global are now selling 40% of their holdings too. The Russian alone walks away with $2.5 bln from the IPO at the top of the range. Peter Thiel is selling 16 mln shares even as Reid Hoffman holds on to his end of the investment.
The $16B IPO is thus larger than the GM and AIG IPOs and better than the recent successful closing of BTG Pactual. The IPO will be priced on Thursday night
Founder Mark Zuckeberg is selling 30 mln shares to solve tax demands coming from the IPO and the other founder Savarin is leaving the US to save $67 mln on taxes. Visa raised $18 bln in 2008 while the Chinese banks AgBank hold the record with a $19.2 bln outside US which by itself was just outside $19.1 B raised by ICBC in 2005/6
Digital competitors Amazon (NYSE:US) and Apple (NASD:US) raised IPOs at $18 per share and $22 per share in their first offerings and in 2004 Goldman Sachs’ $4 bln IPO was the world’s largest at the time Amazon had raised $54 mln in its IPO and Apple $100 mln. Google of course has been struuggling since 2006 when its digital advertising revenes became totally dominant in the mix. Hertz was one of the bigger IPOs that failed in 2006 and then AIG could not find buyers for a long time since its Treasury stake of $80 bln weighed it down. Facebook’s active users though and just the daily logging species has a population more than US and Brazil put together.
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