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Facebook’s IPO Prices at $38

Facebook's offering will be the third-largest in U.S. history


At the close of the trading today, Facebook (NASDAQ:FB) priced its initial public offering at $38 a share, giving it a market value of $104 billion.

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.

Article printed from InvestorPlace Media,

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