Friday’s debut of Facebook (NASDAQ:FB), a company valued at $104.02 billion on the Nasdaq stock market in New York will “baptize” over 1,000 millionaires in dollars, at least on paper, and will propel the network founder, Mark Zuckerberg, on the 29th place in the top of world billionaires. Facebook concluded on Thursday the largest IPO ever deployed in high-tech and Internet industry, as it managed to place on the market about 422 million shares at a starting price of $38 per unit, the ceiling price targeted by company.
The social network site has attracted over $16 billion, the third largest IPO in U.S. history, after Visa and General Motors. The offer could increase to over $18.4 billion if options reserved for certain investors who subscribed the operation are exercised, writes Reuters. The market capitalization of Facebook at the debut on Friday on Nasdaq will be over $100 billion, surpassing big names like Amazon.com, Hewlett-Packard, Starbucks and Dell.
Investors expected strong growth of Facebook shares on Friday on the Nasdaq stock market, as international press reports estimates an increase from 15-20% up to 50%. “An increase of 15-20% is possible, since they already have increased the target price and the volume of shares placed on the market,” comments for Reuters Tim Loughran, a finance professor at the University of Notre Dame. Facebook has increased in recent days, at the last minute, targeted price range of the offer from $28-$34 per share to $34-$38 and the number of shares placed on market was up by 25% to almost 422 million.
Facebook shares started to trade at $42.025 on Nasdaq under the symbol “FB” around 11:00 AM. Some investors believed that the shares of the social networking company will grow by 30% on Friday, despite fears about the potential long-term monetization of the business. Morningstar analysts’ estimates indicate an average closing price of $50. Facebook shares were around $40 in midday on Nasdaq. There is news about Facebook Underwriters trying to support stock around $38 a share.
Zuckerberg is the 29th richest person in the world
It is estimated that a Facebook IPO will baptize Friday, more than 1,000 millionaires in dollars, at least on paper, and San Francisco Bay is preparing for a boom in sales from real estate to expensive cars. With the stock market debut at $38 per share, the value of more than 503 million shares held by Mark Zuckerberg, 28 years old, will be $19.1 billion, and the Facebook founder will rank 29th in the top of world’s billionaires, surpassing Google co-founders Larry Page and Sergey Brin, according to Bloomberg. Zuckerberg will also top Michael Dell, Dell founder and Paul Allen of Microsoft. Founded in 2004 in the Harvard campus, Facebook has become the largest social network in the world, with over 900 million active users (who log in at least once a month).
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