Facebook IPO - New Disclosed share prices value it at up to $95 billion: Renaissance Capital

The social networking leader Facebook has been valued at up to $95 billion (£58.6 billion) after the company has set a price range of $28 (£17) to 35 dollars (£21) per share for an initial public offer (IPO) in a regulatory filing.  

Facebook IPO - New Disclosed share prices value it at up to $95 billion: Renaissance Capital

Facebook's IPO has been regarded as the much-awaited event by experts, not just because of how much money it will raise but because of its worldwide popularity among the internet users. The world's largest online social network has more than 900 million users worldwide.

With the above-stated disclosed price range for IPO, Facebook has becomes the biggest ever valued internet company and its current shareholders could raise as much as 13.58 billion dollars (£8.3 billion). That happens if the underwriters sell extra stock reserved for over-allotments, which they will be expected to do keeping in view the excitement surrounding the IPO.

According to Renaissance Capital - an IPO investment adviser, with an expected number of Facebok shares i.e. 2.74 billion; it’s offering values the company at 76 billion dollars (£47 billion) to 95 billion dollars (£59 billion). 

Present record-holder Google Inc. raised $1.9 billion (£1.2 billion) including the over-allotment for their IPO back in 2004 and Google was valued at $23 billion (£14.2 billion). Google is now worth about $200 billion (£123 billion).

Facebook CEO Mark Zuckerberg, who turns 28 this month, has emerged as a genius leader who's led Facebook through extraordinary expansion from its patchy beginning as an interaction medium for Harvard students.

Facebook's next step is to go on an "IPO road show," where executives talk to potential investors about why they should invest in the stock. On Thursday, Facebook posted a version of its road show online, with appearances from Zuckerberg; the vice president of product, Chris Cox; and other executives.

If all goes well, Facebook's stock is expected to price on May 17 and make its public debut on May 18.

Zuckerberg will keep tight control over the company even after the IPO. He will control 57.3% of the company's voting power, through stocks he owns or because other shareholders have promised to vote his way through shares that they own. This means he will have final say over the biggest decisions facing the company even after it goes public.

Report Tags: Facebook, Facebook IPO, Facebook Value, Mark Zuckerberg, Social Network, Renaissance Capital, Facebook Shares, 95 billion dollar,

Facebook IPO: Social networking giant signs $8 billion credit deal with consortium of banks

PALO ALTO, CA (Fri, Mar. 09) – Social networking website Facebook, has secured credit deal worth $8 billion from a consortium of banks ahead of the social network's eagerly anticipated initial public offering (IPO).

Social networking giant signs $8 billion credit deal with onsortium of banks

According to documents submitted Wednesday with the Securities and Exchange Commission (SEC); Facebook had secured a $5 billion revolving line of credit over three years from a bank consortium including Morgan Stanley, JP Morgan, Goldman Sachs and Bank of America-Merrill Lynch.

Sources in Facebook revealed that the company aims use the facility "for general corporate purposes." In the wake of new arrangement Facebook has terminated the credit facility agreement inked with Barclays Capital and others that granted the company the borrowing capacity of $2,500 million.

The social networking giant also said it had reached a deal with the same group for a $3 billion bridge credit facility to enable it to fulfill a number of obligations related to the initial public offering (IPO).

“This bridge credit facility allows us to borrow up to $ 3 billion to fund tax withholding and remittance obligations related to the settlement of RSUs (Restricted Stock Units) in connection with our initial public offering,” Facebook filing said.

In early February, Facebook filed for its IPO aiming to raise at least $5 billion in the largest stock flotation ever by an Internet company; but figure could grow to $10 billion depending upon the interest of investors.

The Palo Alto, California-based company, founded by Mark Zuckerberg eight years ago when he was just 19, reported net income of $668 million last year, up from $372 million the previous year.

In the documents filed Wednesday, Facebook also said it had now total of 31 underwriters after adding 25 to the existing six ahead of its IPO, expected later this year.

Facebook's value has been estimated at $75 billion to $100 billion.