With Facebook giant IPO is just round the corner, Nasdaq looking forward to a spike in the number of companies going public in the near term as in the urge to take advantage of Facebook’s listing next week. A report says that the demand for the Facebook initial public offering (IPO) is strong, while another says it is weak. Both were published less than an hour of each other.
First, Reuters posted an article titled “Facebook’s IPO already oversubscribed: source”:
Facebook Inc’s record initial public offering is already oversubscribed, a source familiar with the share listing said, days after the world’s largest social network embarked on a cross-country roadshow to drum up investor enthusiasm.
Despite concerns about slowing growth, a lofty valuation and signs the company is having trouble ramping up revenue from mobile advertising, institutional investors have so far indicated demand for more shares than Facebook has available, the source told Reuters.
This was soon followed by a second article posted by Bloomberg titled “Facebook IPO Said to Get Weaker-Than-Forecast Demand”:
Facebook Inc. (FB)’s initial public offering has so far generated lower-than-expected demand from institutional investors who are concerned about the company’s growth prospects, people with knowledge of the matter said.
Some investors expressed reluctance after Facebook said on May 9 that advertising growth hasn’t kept pace with the increase in users, said the people, who asked not to be identified because the process is private. Facebook is also telling analysts that sales may not meet their most optimistic projections, two people said.
Concluding both the reports what we expect is that it is going to be huge no doubt but claiming like this one says it is strong and other no it is not, simply make us believe that no one knows exactly the reality behind the scenes.
