As early as Wednesday, Facebook is expected to start the process of becoming a publicly listed company valued at up to 100 billion, being the most anticipated technology IPO in last 10 years and the biggest for a U.S. Internet company ever, topping rival Google.
The long-expected debut as a public company will start this week where it may raise “as much as 10 billion in an offering that would value the company between 75 billion to 100 billion”.
This will put Facebook among the largest public companies in the world, while the targeted amount it place it among the world's 25 largest IPOs, according to the Wall Street Journal, citing unnamed sources familiar with the matter.
This is the most anticipated technology IPO in a decade, as it might exceed Google's initial public offering in 2004 when it raised 1.9 billion, giving it a market value of 23 billion, and now it’s worth 184 billion.
Last week, Facebook, which has 800 million users worldwide, halted trading of its shares on the secondary markets for three days, increasing suspicions of an IPO filing to be on the way as early as Wednesday.
At the expected price, Facebook's IPO would be the biggest for a US Internet company. The company’s revenue might grow 52% this year to 5.78 billion and could reach 7 billion in 2013, which could determine investors to bet heavily on Facebook.
The main reason for an IPO is to produce a profit for the company, which will add to the 17.5 billion that CEO and founder Mark Zuckerberg, 27, own although the shares traded till now only on a closed market.