Facebook set to announce massive share sale
Facebook is expected to submit paperwork to regulators today for a $5-$10 billion initial public offering for 10% of the company.
Facebook picked Morgan Stanley to take the coveted lead role in what is expected to be the largest IPO ever to emerge from Silicon Valley, according to reports.
The $5 billion is a preliminary target and could be ramped up in coming months in response to investor demand, sources told the International Finance Review.
The other four bookrunners chosen were Goldman Sachs, Bank of America Merrill Lynch, Barclays Capital and JP Morgan, although the underwriting syndicate could be expanded later, IFR cited the sources as saying.
The preliminary filing sets the stage for a May IPO of the world’s largest social network, IFR reported, a coming-out party that will dwarf almost any before that, including Google’s $2 billion IPO.
Morgan Stanley’s experience in arranging major internet IPOs – including those of Groupon and Zynga – helped it clinch a pivotal role after an unusually secretive selection process, IFR reported.
Final pricing would not be set for months, during which the size of the IPO could be increased should investor demand warrant it, IFR added.