Facebook has been planning its IPO (Initial Public Offering)
for some time now and has been waiting approval from the Securities and
Exchange Commission but sources say that the day for this to happen may be May
17th. Back in November of last year, Facebook executives were
discussing when they should file the paperwork for the IPO and apparently they filed
paperwork for its IPO on February 2. But it usually takes around 12 weeks for a
new company to begin trading on the stock market. The SEC prohibits anyone with
knowledge of the filings to report anything to the media so nothing is for
sure but there has been some talking going on from people in the know.
Facebook’s IPO is expected to be one of the largest tech
offerings ever and they plan to raise $5 billion dollars in doing so. Facebook
has recently stopped trading in private markets, so their 2.5 billion outstanding shares
don’t have any other way to trade until a public offer happens. This also keeps
their implied value from getting too much higher than it was on the last close
of their trading.
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