Based on a recent report published by Reuters, Facebook plans to raise $10.6 billion out of the mega IPO that is expected this summer. The Silicon Valley company will thus, propose an IPO that is bigger than Google reaching a market value equal to the one of Amazon.
The first predictions related to Facebook’s upcoming IPO have already been made. The representatives of the social network have communicated that they plan to raise $10.6 billion in the mega public offering and analysts are already debating whether this outcome is achievable or not.
Mark Zuckerberg announced on Thursday that the IPO might raise the price of Facebook shares. According to his estimates, the prices will range somewhere between $28 and $35. As a consequence, the value of the company might be even bigger than what was initially predicted, from $77 billion to $96 billion.
Analysts think this is the biggest IPO that has been made by a tech company up to the present. The value of the initial public offering is mirrored, according to Lise Buyer from Class V Group, by the company’s growth and its money making potential. Despite this, specialists argue that investors should consider how many days of growth Facebook had in the past and how many will be in the future. If the future looks just as promising as the past, investors should consider buying shares.
According to the road show schedule, Facebook is due to start trading its stocks on May 18. The trading will start at a certain level, but the price range will be adjusted depending on Wall Street’s response to the offering. Even though, people fear that Facebook won’t be able to continue its growth on the long run, the company expects many investors to show interest in the highly anticipated IPO.
The show road is due to start on Monday and will last for a couple of weeks. Mark Zuckerberg and other executives will be on the road to present their investment case in various cities across U.S. The presentations will start in New York and they will continue in Chicago and Boston. The last stop on the road show will be at Facebook’s home turf in Menlo Park, California.