Facebook today set the estimated price for its initial public offering at $28 to $35 a share, giving eager potential investors the first indication of its valuation. It is seeking to sell 337.4 million shares; Facebook therefore net $5.6 billion if it achieves a $31.50 price in the middle of the range.
This puts a value of up to $95 billion on Facebook, which is widely expected to begin trading on May 17 or 18.
The company started its roadshow today. Facebook’s prospectus and a half-hour video presentation can be viewed here (the intensive regulatory guidelines mean the video is not embeddable).
CEO Mark Zuckerberg will sell 30.2 million of his shares yet will continue to control 57.3 percent of the company’s voting power, according to the latest S1 revision Facebook filed today with the Federal Exchange Commision. A staggering amount of Zuckerberg’s proceeds will go toward paying his associated tax bill, the filing said.
Due to his majority power, Zuckerberg also will retain the final say on matters submitted to shareholders for approval, including the election of directors and direction of the company.
Related links:
Facebook – Roadshow Presentation
SEC – Facebook’s S1, Amendment 5
New York Times – Ahead of I.P.O., Facebook Sets Price Range at $28 to $35
TechCrunch – Facebook S-1 Confirms IPO Share Price Of $28-$35, Raising $5B To $6.3B, Hardware Patent Lawsuit Threats
Wall Street Journal – Facebook Sets $28-$35 IPO Range
AllThingsD – After Public Offering, Mark Zuckerberg Will Still Control More Than Half of Facebook
