Tech companies ipo’s have been pretty unexciting so far and not lived up to people expectations , but the facebook Ipo could possibly change this. Facebook is no one of the most popular social network website in the world and continues to expand at a rapid pace. Facebook has entered the homes of billions of people and become part of their lives wether it being a uprising ,flash mobs organising, riots information and social sharing, or then just LIKE.
The Wall Street Journal ( financial newspaper) reports that Facebook is preparing to file initial paperwork for an offering that could raise as much as $US10 billion ($9.38 billion) and value the company at $US75 billion to $US100 billion.
Some Major ipo’s raised previously
- Visa Inc’s $US17.9 billion IPO ( March 2008 )
- Agricultural Bank of China Ltd $US19.3 billion( July 2010 )
Facebook and its valuation
“Facebook’s IPO” is reported to be one of the biggest for a US Internet company – topping the debut of one of its main rivals, Google . Facebook’s reported valuation of $US75 billion to $US100 billion compares with many other major US companies valuation as listed below.
- $US100 billion for McDonald’s Corp
- $90 billion for Citigroup Inc
- $US55 billion for Hewlett-Packard Co
- $90 billion Amazon.com Inc
- $US75 billion for Bank of America Corp .
The other giants like APPLE have giant market capitalisations in comparison APPLE ( US$ 417 Billion) ,Microsoft (US$245 Billion) and Google (US$188 Billion). Founder Mark Zuckenberg has been saying that Facebook is in no hurry to list, but the US securities and exchange commission requires companies that have assets worth more than US$ 10 Million and 500 shareholders to disclose details of their financial performance making it harder for the facebook IPO to not come any sooner.