Facebook sells 25% more shares
Facebook say it will sell 25% more shares than it first originally planned in a flotation in response to strong demand. The bold move has come after the social networking site said it is likely to raise the price of the shares by 21% to between $34 and $538 (£21-£339).
The social networking site announced on Wednesday that 25% more of the company’s shares will be sold. If the company sells its $16 billion shares as expected, it will become the largest tech IPO (Intellectual Property Office) in history. A filing with Securities Exchange Commission could see the shares fetching a further $3 (£19) billion which would bring the sale to as high as $16 (£101) billion.
Mark Zuckerberg, the founder of Facebook, is said to be not selling any additional shares himself, but is sticking to selling 30 million shares, less than 6% of his Facebook holdings. Zuckerberg is said to be selling his shares in order to cover his tax bill from the IPO.
Facebook is expected to be worth around $100 billion and is set to become more valuable than brands that have been concreted in American culture for decades such as McDonald’s and Disney.
The final pricing is set to be made on Thursday evening.