Facebook IPO likely in 2012, to fetch $10 billion







This probably is the most awaited IPOs in recent times. There have been immense speculations on when Facebook will go public and have its IPO. Many were predicting that Facebook might come out with an IPO in 2013 but the way the company has grown and the number of investors currently funding the company, it is extremely likely that Facebook by release its IPO in 2012 or earlier. Industry analysts predict that the IPO announcement could come anywhere between April to June 2012.

The reason for this speculation is the fact that federal government laid down rules that any company that has 500 or more investors should have its public offering and apparently Facebook has reached that number. So at the end of the financial year when they publish their financial report along with the list of investors, Facebook will automatically qualify for mandatory public offering.

However the bigger news than the IPO announcement is the speculation on the amount of money the company will raise with the IPO. Facebook is apparently contemplating to raise $10 billion with the IPO and if that does happen then it would not only put the market valuation of the company at $100 billion but also it would be the biggest IPO ever seen, and by a big margin. The next best IPO was way back in 1999 when Infineon Technologies AG, generated $5.23 billion.

The current market valuation is estimated to be $66 billion and jumped in its valuation after a recent investment of 1.5 billion by Goldman Sachs.

Needless to say everyone will want a pie of the Facebook IPO and that alone will make it the most anticipated IPOs of all time.