Yes folks you heard right Facebook’s IPO is now one of the high priced public offering stock. The world’s online social networking giant is raising at least $16 billion for the company and its early investors that was seen in a transaction that values Facebook at $104 billion. With this increment it’s a big deal for a company which started eight years ago with no way to generate income.
On thursday the price that got fixed for Facebook’s IPO at $38 per share at the high end of expectations. This value if we compare it with the IPO values of Amazon.com and other well-known companies such as Kraft, Disney and McDonald’s then it is comparatively high. Apart from it Facebook’s stock is said to begin its trading on the Nasdaq Stock Market from Friday morning under the ticker symbol “FB.”
The offering by Facebook is the culmination of a year’s worth of Internet IPOs that began last May with trailblazer LinkedIn Corp. Since then, a string startups focused on the social side of the Web have gone public, with varying degrees of success. It all led up to Facebook, the company that’s come to define social networking. Nick Einhorn, research analyst at IPO investment advisory firm Renaissance Capital said “They could have gone public in 2009 at a much lower price, they waited as long as they could to go public, so it makes sense that it’s a very large offering.”
According to data from Dealogic (financial data provider), Facebook Inc. is one of the third highest priced company that reaches to the public, before that only the two Chinese banks have been worth more than this. At $16 billion price point, the size of the IPO is the third-largest for a US company. The largest U.S. IPO is Visa, which raised $17.86 billion in 2008. second is the power company Enel followed by General Motors.