April 19, 2012
Latest IPO Date For Facebook Pegged For May 17
Gossip and hearsay on the IPO date for Facebook is heating up, again, with the Securities and Exchange Commission (SEC) expected to clear the paperwork for the IPO by May 17th - as well as approving Facebook´s recent $1 billion acquisition of photo-sharing app, Instagram.
Expected to be valued at around $100 billion when it goes public, this would reflect current levels of trading in the secondary markets (and avoiding SEC scrutiny). Other reports say that the company wants to raise $10 billion at a $100 billion valuation, writes Alexia Tsotsis for Tech Crunch.
“Investors want as high a price as possible so that the secondary market won´t look like a problem,” said a source for Tech Crunch. With 2.51 billion fully-diluted shares outstanding, the valuation desired would price the stock at around $40 a share.
When the initial documents for the IPO were lodged in February, it was revealed that Mark Zuckerberg, the young founder and chief, owns a 28.4 percent stake, but has effective control under a share structure which gives him voting rights over 56.9 percent of the equity.
“Zuckerberg would retain the ability to control the outcome of matters requiring stockholder approval, even if he owns significantly less than a majority of the shares,” the filing said.
Zuckerberg was paid a base salary of $500,000 in 2011 and his total compensation came to $1.48 million, but he will take home just $1 a year from 2013, following the example of his idol, Apple founder Steve Jobs, writes Emma Barnett, Digital Media Editor for The Telegraph.
The young founder claimed in SEC papers that, like the printing press or the television, Facebook has the power to lead a “complete transformation of many important parts of society.”
“They gave more people a voice. They encouraged progress. They changed the way society was organized. They brought us closer together. Today, our society has reached another tipping point,” he wrote.
He stressed Facebook´s mission has more social than about making money. “Facebook was not originally founded to be a company,” he said. “Simply put: we don´t build services to make money; we make money to build better services.”