April 6, 2012
Facebook To List Shares On Nasdaq
While such a move would only generate a small amount in annual listing fees for Nasdaq, it would cement the exchange operator´s position as the top venue for leading U.S. tech companies.
“It´s a high-profile win for their listings business,” Michael Adams, an analyst Sandler O´Neill, told The Times.
“In terms of earnings, the impact won´t be dramatic, but it´s something to be proud of,” he said.
A Facebook spokesman declined to comment on the matter, saying the company is precluded by Securities and Exchange Commission rules from most public comment since it filed in February to go public.
Facebook´s initial public offering (IPO) has been one of the most coveted stock listings in recent years. The popular social network has more than 800 million users, and is seeking to raise at least $5 billion in the offering, which is expected in May. The IPO is on track to be the largest since Google´s debut in 2004, and could value the company as high as $100 billion.
But even with an offering of $5 billion, the listing would be the largest in Nasdaq´s history, the Times reported.
In deciding where to list its shares, Facebook had to consider the differences between the different exchanges. For instance, Nasdaq is a fully electronic marketplace, while the New York Stock Exchange (NYSE) offers a hybrid model that includes both a floor-based and electronic marketplace. And while NYSE is broadly considered a more global brand, its pricing structure is also more expensive.
Facebook is now entering the final phase of the IPO process, and has curbed its trading on secondary exchanges in recent weeks, where its private shares are traded. The company has also filed a new S-1 as a result of Yahoo´s patent lawsuit, and has filed personal documents related to founder and chief executive Mark Zuckerberg. The Federal Trade Commission agreed this week to expedite approval of the filing for Zuckerberg.