Facebook To Increase IPO Price Range, Demand Is High

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Facebook To Increase IPO Price Range, Demand Is High:

There is no doubt that Facebook is one of the hottest new companies in the world with over 900 million users and growing steadily.  Facebook’s initial public offering is set for Friday May 18, 2012 and demand for shares of the social media network are rising.  Facebook was set to offer shares to the public from $24 to $35 per share but the demand for ownership of the new company hitting Wall Street is on fire.

Facebook has raised its initial offering range to between$34 and $38 per share which makes the company’s value near $105 billion after an additional $12 billion is raised.  Institutional investors such as big banks must want to own shares of Facebook from the very start and the road show in which Mark Zuckerberg along with company execs tried to generate interest in the company can be deemed largely successful since the offering price for shares has increased.

The Facebook IPO is the most highly anticipated new offering since Google and the price increases suggests it will be heavily held by investors who are probably looking to keep shares for a long time.  If the IPO moves up sharply on Friday, this may not be an opportunity for the little guy to get shares even though he or she is a major reason the company is so successful.

The increased share price equals rising interest that may not wane for a long time.  After recent disappointing IPOs from other social media names like Zynga, LinkedIn and Pandora eventually gave buyers opportunities after the closing day, could Facebook be different and more like Google- never looking back after the initial pop?   Regardless of valuation, demand for shares is high – price may continue to rise short term.  There may not be a more interesting IPO for years to come.

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