Facebook is getting ready to file for an IPO, and could do so as early as next week. Valued at an estimated of 100$ dollars, it is estimated that it cold raise up-to 10 billion dollars in its initial public offering, which would be the largest ever for an US internet company, surpassing Google that holds the current record or largest IPO of $1.9 Billion, held back in 2004.
Facebook is reportedly all set to file the papers with securities and exchange commission, the process can be completed as soon as next week. This would mean that the Facebook IPO would be help sometime in April and June. And if they do manage to raise upto $10 Billion, it would effectively become the forth largest IPO to be held in the United States.
Now talks of a Facebook IPO have been around for some time and it is known that the Facebook founder and CEO Mark Zuckerberg was not too enthusiastic about an Facebook IPO and delayed putting up the company for an IPO, and was only compelled when Facebook came up against a government regulation that directs a company with more than 500 Shareholders to disclose the financial reports of the company.
Morgan Stanley, one of the leading Investment banks is expected to take the lead in the Facebook IPO, and would definitely benefit much from this position as the Facebook IPO is expected to be a really lucrative one, even in today’s somewhat still shaky economy.
Now there are experts that seriously consider that at 100$ billion, Facebook is way overpriced, and it’s annual revenue generated is nowhere near enough to justify it’s 100 billion price tag. This could be true but the fact is that Facebook is a huge huge brand now and the name is known in almost every household with a computer. Whether or not it is a bubble waiting to bust remains to be seen with the Facebook IPO, but expect a few people to make a LOT of money. At-least on paper anyway.[Via: Appleinsider]