Facebook today once again updated its filing for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC). This is the fifth time it has done so, and the biggest update is that Facebook has set a price range of $28 to $35.
Given the sale of some 337.4 million shares, 180 million of Class A common stock, this means the company could raise between $5.04 billion as much as $6.3 billion. The company estimates it will likely net $5.6 billion from the offering if it achieves a mid-point price of $31.50 per share.
Here’s the relevant excerpt:
Facebook, Inc. is offering 180,000,000 shares of its Class A common stock and the selling stockholders are offering 157,415,352 shares of Class A common stock. We will not receive any proceeds from the sale of shares by the selling stockholders. This is our initial public offering and no public market currently exists for our shares of Class A common stock. We anticipate that the initial public offering price will be between $28.00 and $35.00 per share.
Facebook co-founder and CEO Mark Zuckerberg will personally sell 30.2 million shares for the IPO. Despite this, he will still control the majority of the company: 57.3 percent of voting shares after the IPO.
The social network is now likely only about two weeks away from a final pricing and the first trading of its shares on the Nasdaq Stock Market, under the symbol FB. The company is planning to start its roadshow to pitch its stock to investors on Monday, people familiar with the matter have said.
Companies regularly tweak their pricing information after they’ve issued a first pricing range. That means Facebook’s share price could climb higher in the coming days, depending on demand seen by the firm’s investment bankers as they showcase the deal to institutional investors on a roadshow.
If Facebook ends up going public at the lower end of its price range, that would be a big hit for investors like Kevin Landis of San Jose, Calif., tech fund Firsthand Capital. Mr. Landis bought shares of Facebook on the secondary market for $31 to $32 a share over the last year and agreed not to sell the shares for six months after the IPO.