Facebook’s IPO is already expected to be the largest in history, and the internet company has just revealed that it is expanding its initial public offering even more.
As the most popular online social network, Facebook has upped the stock price range from $28-$35 to $34-$38 per share. The sale may raise as much as $12.8 billion, given these prices.
Many analysts are comparing the Facebook IPO to the iconic Google offering back in 2004. However, Facebook’s is much larger in comparison, and the company will already be valued at $104 billion. Meanwhile, some U.S. citizens feel that the evaluation is much too generous, according to an Associated Press-CNBC poll. In fact, only a third of the participants believed that Facebook’s estimated value is legitimate.
“Demand is obscenely high,” said IPOBoutique’s Scott Sweet. He added that Facebook should proceed with caution when it comes to raising the price, otherwise the stocks won’t perform as well when traded in the Nasdaq Stock Market. “This is a deal that literally must work, in that it is so high-profile. It would really level the IPO market is Facebook flopped,” he added.
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