Feeds

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

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

Build a business case: developing custom apps

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. ®

The essential guide to IT transformation

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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?