Facebook's IPO one of the world's largest
Facebook is about to find out just how much status updates, puppy photos and billions of "likes" are worth on Wall Street.
Facebook’s stock is set to begin trading on the Nasdaq Stock Market on Friday, the day after the world’s definitive online social network raised $16 billion in an initial public offering that valued the company at $104 billion.
That’s more than Amazon.com and other well-known companies such as Kraft, Walt Disney and McDonald’s. It’s a big windfall for a company that began eight years ago with no way to make money. Facebook priced its IPO at $38 per share on Thursday, and opened at $42 per share on Friday.
Now, regular investors will have a chance to buy stock in Facebook for the first time. The stock will trade under ticker symbol will be FB.
Facebook Inc’s valuation is the third-highest in an IPO, according to Dealogic, a provider of financial data. Only two Chinese banks, Agricultural Bank of China in 2010 and Industrial and Commercial Bank of China in 2006, have been worth more.
They were worth $133 billion and $132 billion, respectively. The $38 share price is the price at which the investment banks arranging the offering will sell the stock to their clients.