Facebook filed an amended S-1 today, establishing an initial public offering price range of $28 to $35, with the company expecting to issue 337.4 million shares. Based on the price range, the company will have a valuation of $85 billion to $95 billion, which would dwarf all other social companies, including Zynga (NASDAQ:ZNGA), LinkedIn (NYSE:LNKD) and Groupon (NASDAQ:GRPN).
Note: This valuation could change. Early next week, Facebook will go on its roadshow to get investor feedback, which could have an effect.
But it seems likely that Facebook will want to be somewhat conservative on the valuation so as to not have the IPO fall on its first day of trading.
For more on the deal, check out InvestorPlace’s special Facebook feature page.
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.
A long-time follower of the IPO scene, back in 1999 Tom started one of the first sites in the space called WebIPO. It was a place where investors got research as well as access to deals for the dot-com boom. Tom also wrote the top-selling book, Investing in IPOs. In it, he covers all the aspects of analyzing an IPO, such as reading the prospectus, detecting the risk factors and understanding some of the arcane regulations. But don’t worry — if that process is too intimidating for you, thankfully Tom will do the legwork for you right here in the IPO Playbook blog.
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