Facebook Said Set to Finish Taking IPO Orders Tomorrow
Facebook Inc. (FB) plans to stop taking orders tomorrow for its initial public offering, two days ahead of schedule, according to a person with knowledge of the transaction.
Facebook will likely finish taking orders for the IPO after U.S. markets close May 15, said the person, who declined to be identified as the plans are private. The offer of 337.4 million shares at $28 to $35 each has been oversubscribed, according to people with knowledge of the matter, who declined to say by how much orders exceeded the amount of stock on offer. Jonathan Thaw, a spokesman for Facebook, declined to comment.
“They’re swamped with the orders that are in,” said Jon Merriman, chief executive officer at investment firm Merriman Holdings Inc. (MERR) in San Francisco. “They just need time to determine the price. They can send the message -- the books are closing, send in your orders now.”
The world’s most popular social-networking site, led by CEO Mark Zuckerberg, is seeking a market value of as much as $96 billion. At that level, Facebook would surpass United Parcel Service Inc. (UPS) as the most valuable company in history to go public in the U.S., based on market capitalization, data compiled by Bloomberg and Dealogic show.
Some institutional investors had balked at buying into Menlo Park, California-based Facebook over concern about the site’s growth prospects, people with knowledge of the matter said last week. In a Bloomberg Global Poll of more than 1,250 investors, analysts and traders, 79 percent said Facebook doesn’t deserve such a high valuation.
Pricey Offering?
“Facebook’s pricing seems to be quite expensive,” said Yves Maillot, head of investments at Robeco Gestions SA in Paris, who helps oversee $6.8 billion. The IPO is also pressing ahead in a “very difficult environment for the U.S. equity market.”
The Standard & Poor’s 500 Index sank 1.1 percent to 1,338.35, the lowest level since February, as Greece struggled to form a new government amid mounting concern the nation may leave the euro. The index fell for a second day as financial companies and energy producers led losses among all 10 of its main industry groups.
Facebook initially planned to finish taking orders on May 17, data compiled by Bloomberg show. Its shares will list on the Nasdaq Stock Market under the symbol FB. Morgan Stanley (MS), JPMorgan Chase & Co. (JPM) and Goldman Sachs Group Inc. (GS) are the lead managers for the sale.
Zuckerberg is celebrating his 28th birthday today, during the final leg of a roadshow aimed at building demand for the IPO and convincing investors that Facebook can make money from mobile users.
To contact the reporters on this story: Zijing Wu in London at zwu17@bloomberg.net; Sarah Frier in New York at sfrier1@bloomberg.net
To contact the editor responsible for this story: Jacqueline Simmons at jackiem@bloomberg.net
Facebook Said Set to Finish Taking Orders for IPO Tomorrow
Scott Eisen/Bloomberg
Facebook Inc. will probably finish taking investor orders for the IPO after U.S. markets close tomorrow, said the person, who declined to be identified because the plans are private.
Facebook Inc. will probably finish taking investor orders for the IPO after U.S. markets close tomorrow, said the person, who declined to be identified because the plans are private. Photographer: Scott Eisen/Bloomberg
May 14 (Bloomberg) -- Apple Inc. co-founder Steve Wozniak talks about Facebook Inc.'s initial public offering outlook and its Chief Executive Officer Mark Zuckerberg. Wozniak says he will buy shares in the social-networking company when it sells its first shares to the public May 17, regardless of its valuation. Wozniak also discusses his role in co-founding Apple and the company's patent dispute with Samsung Electronics Co. He spoke with Bloomberg Television's Shraysi Tandon on May 13 in Sydney. (Source: Bloomberg)
May 14 (Bloomberg) -- Michael Cole, president of U.S. Bancorp's Ascent Private Capital Management, talks about the outlook for Facebook Inc. employees who will likely become millionaires when the social-networking company goes public. Cole speaks with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)
May 14 (Bloomberg) -- Facebook's Mark Zuckerberg is celebrating his 28th birthday today, during the final leg of a roadshow aimed at building demand for the IPO and convincing investors that Facebook can make money from mobile users. Bloomberg's Jon Erlichman reports on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)
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