Feeds

Facebook ups IPO shares to $38, edges towards $104bn value

You want some stocks? Pay more... bitch!

Choosing a cloud hosting partner with confidence

Facebook has reportedly raised the price range on its IPO shares from the $28-$35 range to $34-$38 each, as the growing interest of investors has boosted the valuation of the firm to up to an eye-watering $104bn.

By the end of last week, reports abounded that the initial public offering was oversubscribed, and the demand for the hottest internet stock since Google debuted has made it easy for the social network to up the ante.

A source familiar with the matter told Reuters today that Facebook had raised the share price, while a second source said that the IPO book would close today, ahead of schedule, another sign that the craving has been at fever pitch.

The sluggish world economy has put companies off going public on the markets for fear of taking a battering if stocks are once again hit by circumstances outside their control – for example, Greece exiting from the euro.

Facebook has been arguably the most exciting stock to come online in the last two years. An almost mystical faith has sprung up in the shares, despite the fact that the social network hasn't yet found a way to adequately monetise its mobile apps; despite the myriad and ongoing changes to the UI, which have caused some user grumbling; and despite its head honcho, Mark Zuckerburg, being seen to fly solo on some extremely big decisions – as evidenced by his spending of $1bn on non-revenue-generating app firm Instagram without telling the board.

Although those issues could give some bullish stockholders pause, Facebook has proved enduringly popular in comparison to rivals like MySpace and Bebo. Investors may be counting on the fact that, like Google, the network is now so entwined into people's internet interactions that they'd find it hard to disentangle themselves even if they wanted to.

If Facebook continues to be oversubscribed despite the price hike, the shares are likely to jump on the first day of trading – expected to be this Friday – as those who missed out jump on the stocks. ®

Internet Security Threat Report 2014

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.