Facebook IPO oversubscribed - source

2012-05-11 16:26
San Francisco - Facebook Inc's record initial public offering is already oversubscribed, a source familiar with the share listing said, days after the world's largest social network embarked on a cross-country road show to drum up investor enthusiasm.

Despite concerns about slowing growth, a lofty valuation and signs the company is having trouble ramping up revenue from mobile advertising, institutional investors have so far indicated demand for more shares than Facebook has available, the source said.

Analysts say the company, which is seeking to raise about $10.6bn by selling more than 337 million shares at $28 to $35 apiece, may raise that price range if demand turns out to be healthy enough.

One large institutional investor had put in a major order for shares on Wednesday and was calling around syndicate desks trying to acquire more, a second source familiar with the IPO's progress said, declining to be identified because the details are not public.

Facebook declined to comment.

The company that began as Mark Zuckerberg's Harvard dorm room project is expected to begin trading on 18 May after an IPO that dwarfs the coming-out parties of other tech powerhouses.

With 900 million users, it is challenging established web businesses such as Google and Yahoo! for consumers' online time and advertising dollars.

But longer term, analysts say Facebook needs to develop a way to earn money from the increasing number of users who access the social network on mobile devices such as smartphones.

Facebook, which makes most of its money from advertising, began offering limited ads on the mobile version of its service only recently.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
Read more on:    facebook  |  social networks

linking and moving

2015-04-22 07:36

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24


Rugby World Cup 2015

All the action from the 2015 RWC, including live coverage of all 48 matches, breaking news, fixtures, results, logs - and much more!


Rugby World Cup 2015

Lood leads heavy Bok assault
Hosts England crash out of RWC
Cotter takes loss on the chin
'Basic' Bok plan worked well
Traffic Alerts

Spontaneity is the order of the day. Let go and have some fun. Try not to set too many set plans and expectations and enjoy the...read more

There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.