Facebook Poised to Go Ahead with IPO Q2 2012 - WSJ
Facebook is finally warming up to the idea of going public and plans to take the step in the second quarter of 2012, with an initial registration statement to be filed by the end of December, the Wall Street Journal reported, citing insiders.
The company hopes that the much awaited initial public offering will raise about USD 10 B and value the company at more than USD 100 B, according to people familiar with the matter.
The insiders claim that Facebook has gone so far as to craft its own prospectus, a document, typically prepared by bankers and lawyers hired by a company.
A Facebook offering of USD 10 B would be the largest IPO by any technology or Internet company.
Companies often explore an IPO once they have USD 100 M in revenue. Facebook is expected to debut with more than USD 4 B in revenue.
The Facebook IPO has been long awaited since the hugely successful offering from online professional networking site Linkedln Corp. in Ma, which set the beginning of a new era of internet and social media companies floating on the stock market.
Facebook was launched in February 2004 by Mark Zuckerberg, its co-founder and chief executive, along with Harvard mates Dustin Moskovitz, Chris Hughes and Eduardo Saverin. It soon reached one million users by December 2004, 100 million users in August 2008 and 500 million users by July 2010.
It now counts 800 million users, with 500 million users logging into the site daily.
Zuckerberg has always been reluctant to the idea of going public, but has now reportedly decided to go ahead with the offering, and his team has also been talking to bankers on the offering.
Facebook will be required to make its financial information public by April, because the company will cross the 500-shareholder limit by the end of this year. The SEC requires companies with more than 500 shareholders to publicly disclose its financial information.
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