In all, the company is expected to raise $16 billion — good for the spot as the third-largest IPO in U.S. history behind Visa (NYSE:V, $19.7 billion in March 2008) and General Motors (NYSE:GM, $18.1 billion, November 2010). However, if extra shares reserved are sold too, Facebook could eclipse GM and raise $18.4 billion.
In light of all the hype, investors should be cautious tomorrow. As seen with other hot social deals — like Groupon (NASDAQ:GRPN), LinkedIn (NYSE:LNKD) and Zynga (NASDAQ:ZNGA) — investors would have gotten better valuations by waiting three to six months after the IPOs.
Investors considering getting into Facebook should first check out this piece, where I discuss the pros and cons of Facebook’s business, as well as the timing for a potential position in FB.
Check out InvestorPlace‘s special Facebook IPO section for more features surrounding the Facebook deal.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “The Complete M&A Handbook”, “All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli or reach him via email. As of this writing, he did not own a position in any of the aforementioned securities.