Facebook giant $100 billion IPO Is On Its Way, The Big Question – Should Investors Buy?

Posted on Jan 28 2012 - 7:18am by Editorial Staff

According to multiple media sources, it is confirmed that the world’s largest social networking site, Facebook is going to file its paperwork for it’s to be called as “giant $100 billionInitial Public Offering on coming Wednesday.

Cited an unnamed source, Morgan Stanley is close to winning the IPO deal, while Goldman Sachs is expected to play a key role – according to the journal. The upcoming IPO – expected to raise $10 billion – would be a “trophy” for investment banks – resulting in a huge competition on Wall Street – mainly between Morgan Stanley and Goldman Sachs.

Facebook, the leading social-networking site in the world with more than 800 million users, is widely expected to file for an IPO this year, probably in late may – a deal that’s expected to become one of the biggest public offerings in history.

The WSJ reports that Wall Street giant Morgan Stanley will manage the offering, and that Goldman Sachs will be “intimately involved.” That’s a blow for Goldman, which managed a billion-dollar private share offering for Facebook this time last year.

The big question here is for the investors are shall they buy the social network giant stock or not. The IPO is expected to raise about $10 billion with a valuation of at least$75 billion.  Earlier, the largest tech IPO was done by Siemens former semiconductor subsidiary Infineon.

If we see the recent social gaming company, Zynga, IPO who develop games for Facebook – Zynga goes public with $10 – trader higher at initial stage and then went below $10 and has stayed below $10 only.

Speculations are also that Facebook IPO do heightened this week after news reports of a halt in trading in the company’s privately-held shares on the secondary market, which was said to be a signal that the firm was about to file papers.

(Image Source: Facebook, Featured Image)

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Editorial Staff

Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.