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The Facebook IPO Date Is (Almost) Set

Instagram acquisition could muddle with the timeline


The Facebook date has finally been announced. Sort of.

According to a CNBC report, Facebook will hit the public markets on May 17 — or May 24th, according to a person familiar with the matter. The company will list on the Nasdaq under the ticker “FB,” and Facebook’s underwriters include Morgan Stanley (NYSE:MS), JPMorgan Chase (NYSE:JPM) and Goldman Sachs (NYSE:GS).

The plan is for Facebook to begin its roadshow on May 7, though it’s not even clear whether CEO Mark Zuckerberg will even give presentations to potential investors.

It’s possible that the recent $1 billion acquisition of Instagram could change the timeline — say by a week or so — though the transaction seems straightforward. Besides, Facebook has taken a fairly conservative approach with its accounting, which has helped smooth the going-public process with the Securities and Exchange Commission.

While the Facebook IPO almost certainly will be in huge demand, the valuation could face some headwinds.

The recent plunge in the equities markets could put downward pressure on the valuation, as could the performances of social companies like Groupon (NASDAQ:GRPN) and Pandora (NYSE:P), which have watched their values fall substantially over the past few weeks.

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.

Article printed from InvestorPlace Media,

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