Facebook IPO – What’s On The Way And What To Expect?

Posted on May 14 2012 - 6:29pm by Editorial Staff

The reason of joy is near for all those whom it meant a lot – Yes I am talking about Facebook IPO which is nothing less than like a festival for all – the giant IPO – the social giant going to get public this Friday resulting in bringing its initial public offering – one of the largest initial public offerings in history. Even, furthermore, what makes this IPO more interesting is that the company’s CEO Mark Zuckerberg will be worth $25 billion once the company goes public on Friday, it is around $6.4 billion more than what Yahoo’s total capitalization.

The company starts from a dome and now having the offices worldwide – a social giant – Yes a biggie giant with having a hold on 901 million users worldwide. Now, Facebook is finally growing up as a company and tapping the larger public market for funds. The company has set an IPO price of $28 to $35 a share, valuing the company by as much as $96 billion. The company even offering its underwriters lower price but although they does not mind as the IPO is one of the biggest one. When it goes public, Facebook will trade on the Nasdaq under the symbol “FB.”

Facebook’s IPO has long been one of the hot stories in both the technology and business worlds. The company follows a long string of recent tech IPOs, including Groupon, LinkedIn, and Zynga, which have seen mixed results. The numbers are staggering. The company boasts 526 million users who check into Facebook daily (and 901 million who log on once a month), 3.2 billion “likes” and comments a day, 300 million photos uploaded per day, and 125 billion “friendships.”

Calculating some wonderful facts, at $35 per share price, Facebook would be valued at 70 times its projected 2012 earnings of 50 cents a share, and 18 times its estimated revenue of $5 billion. By comparison, Google trades at $610 a share, but trades at less than 15 times its 2012 profit estimate and six times its revenue. Even if Facebook’s $35 stock price looks like a bargain next to Google’s $610 price, it could still be overvalued relative to its financial potential.

The social giant even finally got listed turning the heartbeats of many as it moves one step further for the much – the social giant has published the FORM 8-A with the U.S. Securities and Exchange Commission (SEC). This is what we really want to hear but last 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.

We all know that we love Facebook but we will be happier when the social giant makes investors money x-times – Yes, I am talking about the real money, (not the credits the social giant offers in its social gaming). May 18 is not far away from now and all what we are waiting that this initial public offering will be “more” bigger than what we are thinking of at initial stage.

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Editorial Staff

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