Report: Facebook Flotation Set For 1 February

The Wall Street Journal, citing an unnamed source with knowledge of the situation, reported 27 January that Facebook will file for its long-awaited initial public offering of stock on Wednesday, 1 February.

If this event, which had been projected by several financial analysts to happen later this spring, does indeed take place, it will easily be the largest IT IPO in history. The sale is expected to bank somewhere in the vicinity of $10 billion (£6bn) for the social network and value the company at a whopping $100 billion.

Record-breaking IPO

In contrast, Google’s 19 August, 2004 IPO on the NASDAQ exchange garnered $1.7 billion at $85 per each of 19 million shares for the search engine and web services company. Google now is valued at $140 billion. Google was trading at $576.38 on 27 January, up $8 on the day.

The largest tech IPO on record is that of Germany-based Infineon, which raised $5.9 billion in 2000.

Facebook recently was valued at about $50 billion, following a $1.5 billion investment from Goldman Sachs and Digital Sky Technologies announced on 22 January.

Details on the Facebook news are few and far between. Facebook itself isn’t commenting. But the Journal has a solid record on stories of this nature.

Morgan Stanley will manage the Facebook offering, the Journal said, adding that Goldman Sachs will be “intimately involved”.

Facebook suspended trading in secondary markets for three days earlier this week, which apparently was an indication that an IPO is indeed forthcoming.

Chris Preimesberger

Editor of eWEEK and repository of knowledge on storage, amongst other things

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