AfterDawn: Tech news

Facebook bags $16 billion in successful IPO

Written by James Delahunty (Google+) @ 17 May 2012 17:19 User comments (4)

Facebook bags $16 billion in successful IPO Facebook in third largest public offering in U.S. history.
Only General Motors and Visa could beat Facebook's initial public offering, which valued the social networking giant at an enormous $104 billion. The service raised $16 billion today as investors rushed to get shares after waiting years for Facebook to finally make the leap.

It's market value is now higher than that of McDonald's, Citigroup and Amazon.com, with investors paying $38 per share. "Facebook is here to stay," said Navin Chaddha, a managing director of the Mayfield Fund, a venture capital firm.

"It's a virtual economy where people are spending more time than any other Internet property."

Facebook insiders and early investors are set to cash in quickly. Last year, Goldman Sachs took a stake in Facebook, and is now set to sell off a third of that stake. Peter Thiel, the VC who backed Facebook in its early days, will sell 16.8 million shares.

Mark Zuckerberg is set to ring the opening bell for the Nasdaq from Facebook's headquarters in Menlo Park, California, on Friday. Facebook shares will sell to the public later in the day, under the ticker FB.

Tags: Facebook
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4 user comments

125.5.2012 8:41

Anyone that bought that stock deserved what they got...

Not that I don't believe Facebook is here to stay but it was vastly over priced. I believe some members of Morgan Stanley deserve jail time.

225.5.2012 8:54

Rather out of date especially considering that shares are headed downwards and will not be climbing again.

Morgan Stanley took a bath on this one, having to spend on the buyback around the same as their fees ($167 million) and it couldn't have happened to a more suitable bunch of conmen and fraudsters. They knew before the opening bell what was going to happen but made sure other banks took positions via high frequency trading so that they wouldn't lose money.

This is what happens when you allow an egotist clown to run a publicly quoted company.


We once had a empire and it was led by an emperor then we had a kingdom which was led by a king. Now we have a country.

325.5.2012 9:13

That's how it works!!!!!
How a place to post pictures and to chat for free is going to cost that much and on top expect it to increase in value.? Only an idiot would think that.

425.5.2012 9:18

Originally posted by salsa36:
That's how it works!!!!!
How a place to post pictures and to chat for free is going to cost that much and on top expect it to increase in value.? Only an idiot would think that.
There's plenty of those around, even when there is a global recession in place. Not that it affects the banks, of course, because even if they lose the taxpayer will take the hit.

We once had a empire and it was led by an emperor then we had a kingdom which was led by a king. Now we have a country.

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