Facebook has filed yet another amended S-1 form with the U.S. Securities and Exchange Commission (SEC). After raising its price range to between $34 and $38 yesterday, the social networking juggernaut is now offering 84 million extra shares.
Don’t burn your fingers, ladies and gentlemen, because this IPO is HOT.
“75% of European digital ecosystem is present at #TNW2018”
Are you doing business in Amsterdam in May?
The increase of shares was rumored earlier by CNBC and Reuters, who both cited ‘sources familiar with the matter’ – who seem to be working overtime to leak absolutely everything about the Facebook IPO before it hits the SEC website.
Anyway, Facebook is now offering 421,233,615 shares instead of 337,415,352 to potential investors as previously indicated. That’s a difference of 83,818,263 (roughly 84 million) shares if you’re keeping count.
Reuters says Facebook may now raise up to $16 billion in its offering. CNBC pegs it at $18.5 billion, for what it’s worth. They’re both right, depending on if you include the 63,185,042 shares of Class A common stock that might be sold to cover over-allotments (see below). (Update: it’s worth noting that the sale of the latter shares won’t generate extra cash for Facebook per se).
If all 421,233,615 shares on offer are sold at the high end of the current price range (meaning $38), and the 63,185,042 additional shares that will be sold by underwriters to cover excess demand are effectively sold, that means the offering may generate $18.4 billion, according to our calculations.
Either way, it will be a boatload of cash, and the blockbuster IPO will likely value Facebook at a staggering $100 billion or more.
These are some of the changes spotted in the filing:
PROSPECTUS (Subject to Completion) Issued May 15,16, 2012 –
Facebook, Inc. is offering 180,000,000 shares of its Class A common stock and the selling stockholders are offering
157,415,352241,233,615 shares of Class A common stock.
The holders of our outstanding shares of Class B common stock will hold approximately
96.3%95.9% of the voting power of our outstanding capital stock following this offering, and our founder, Chairman, and CEO, Mark Zuckerberg, will hold or have the ability to control approximately 57.3%55.8% of the voting power of our outstanding capital stock following this offering.
We and the selling stockholders have granted the underwriters the right to purchase up to an additional
50,612,30263,185,042 shares of Class A common stock to cover over-allotments.
The last bit means underwriters can now sell more stock than originally indicated.
FYI: The social network boasts over 900 million monthly active users, 526 million daily active users on average and roughly 488 million monthly active mobile users.
It recorded $1 billion in net income on revenues of $3.7 billion in 2011.
Facebook is expected to go public on Friday. Co-founder and CEO Mark Zuckerberg will be hanging out at Facebook HQ when its stock finally lists.
Facebook has been approved for listing on NASDAQ under the symbol “FB”.