Rumor: Facebook could file for IPO on February 1

One of the most highly anticipated initial public offerings in recent history could become a reality this week. The Wall Street Journal reports via unnamed sources that Facebook could file the papers to start publicly trading its stock as early as Wednesday, February 1. The article does add that the Wednesday filing date could be pushed back with some of the company's executives thinking about holding off for a few weeks before sending the papers into the US Security and Exchange Commission.

The article also reports that Facebook is close to picking Morgan Stanley over Goldman Sachs as its lead underwriter. Morgan Stanley was the underwriter behind a number of tech-based IPOs in 2011, including LinkedIn, the Facebook-based game publisher Zynga and more.

People have been anticipating that Facebook would file for its IPO for months. When its stock does go up for sale the total worth of the social networking service could be as high as $100 billion, which would make the company worth about half that of Google right out of the box. Facebook will likely seek to raise $10 billion from the sale of its stock. By comparison, Google launched its IPO back in 2004, raising $1.9 billion and getting a total value at the time of $23 billion.

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8 Comments

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So...I guess the big question is...what will the opening number be for facebook?

If they worth of facebook is over 100 billion....my guess is the stock will open at quite probably $1000 a share.

texasghost said,
So...I guess the big question is...what will the opening number be for facebook?

If they worth of facebook is over 100 billion....my guess is the stock will open at quite probably $1000 a share.

$1000 a share?! Don't you have to buy 1000 shares minimum? Or am I confused with something else?

texasghost said,
So...I guess the big question is...what will the opening number be for facebook?

If they worth of facebook is over 100 billion....my guess is the stock will open at quite probably $1000 a share.

It depends on how many Shares they have for the company.
For example Microsoft has billions of shares resulting in a low pps, Facebook could have a low amount of shares and therefore reach that 1000$ per share.
Berkshire has shares that (were?) worth more than 100,000$$$ per 1 - now that is a big check. But i beleive they did a stock split so it will be worth many thousands less now.

I think its sketchy investing in facebook, especially since they are so far into their growth cycle it makes me think that they really cant do much more in terms of growing profits. Its risky in other words - even if they are doing exceptionally well now. Keep Myspace in the back of your mind.