FACEBOOK INITIAL SHARE PRICE – $38 a SHARE, Can you afford one ?

by Michael on May 15, 2012

Yesterday I wrote about the 100 Billion USD IPO that FACEBOOK was undertaking (as if you did not not know about that). However today the social media giant FACEBOOK says it is increasing the price per share that originally it was proposing to the public.

FACEBOOK initially said that more than 337 million shares it is selling would be priced between $28 and $35 a share. But with strong demand for the stock from large institutional investors, FACEBOOK said Tuesday it is boosting that range to between $34 and $38 a share.

FACEBOOK plans to set the exact price Thursday, and start selling shares on Friday. With the sale of more than 12 percent ownership of the company to the public, FACEBOOK could raise more than $12 billion.

FACEBOOK founder Mark Zuckerberg, who turned 28 on Monday, started the company eight years ago in his college dorm room at Harvard. He will still own 57 percent of the company’s voting stock, even after selling some of his shares to meet U.S. tax obligations.

I guess that there maybe quite a few small investors out there who quite fancied the idea of owning some of FACEBOOK, but at that price per share will have been put off. It seems very high, so maybe indeed they targeted mainly the institutions and are looking for a stable Share Price base.

Previous post:

Next post: