Business

Facebook hikes IPO range, valuation may cross $100 bn

  • Reuters, New York/San Francisco
  • |
  • Updated: May 15, 2012 09:57 IST

Facebook has raised the price range in Silicon Valley's biggest-ever public issue to between $34 and $38 per share in view of strong demand. The company announced this in a filing with the US Securities and Exchange Commission on Tuesday.

This will help the social networking site raise more than $12 billion, giving it a valuation potentially in excess of $100 billion.

The company had initially put the IPO range at $28 to $35.

The new range will help Facebook rival the market capitalisation of internet powerhouses such as Amazon.com and exceeding that of Hewlett-Packard and Dell combined.

At the mid-point of $36, Facebook would raise $12.1 billion, eclipsing Google's debut in 2004.

Wall Street had expected the company to increase the price range, with investors keen to get a slice of a strong consumer brand. The IPO roadshow began last week and has drawn crowds of investors from coast to coast.

Facebook plans to close the books on its IPO later on Tuesday, two days ahead of schedule, and in a signal that the landmark initial share sale is drumming up strong demand.

Facebook is scheduled to price its shares on Thursday and begin trading on Friday.

 

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