Fush And Clicks

A Blog On All Things Digital (And Not).

Facebook Potentially Fourth Richest Flotation in Stock Market History

on May 9, 2012

According to the Guardian Facebook is likely to be the fourth richest flotation in stock market history with almost certain IPO success.

Some 338m shares are being sold off at a price between $28 and $35 USD which could could potentially raise almost $11bn in ready cash, potentially valuing the company at up to $100bn.

“That will make it substantially bigger than Google’s 2004 IPO, which raised $1.66bn. Some think the company will push up the offer price even higher; beyond $38, it would be the fourth-largest IPO in history, beating Deutsche Telekom’s $13bn in 1996. The final pricing is expected on 17 May. The social network is emerging into the sunlight after years in which its finances and operation have been surrounded by guesswork. It turns out to have a solid advertising model built around knowing precisely what people are interested in at any time – because its 900m users tell it through their self-penned biographies, updates and connections with each other”.

“The numbers are amazing: 125bn connections between those 900 million people (an average of 139 each). The “Like” button is pressed 2bn times a day. More than half – 526 m – of the users log on each day. And 488m connect using their mobile at least once a month. Of the daily active users, 152m are in Europe, and 129m in the US and Canada. The adverts that generate most of its money can be carefully targeted by age, interests or location – although, to advertisers, Facebook is in effect a black box that they push their requests into; it does not sell them the data”.

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