Basic Question about Facebook IPO

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Basic Question about Facebook IPO

Post by MekongTrader » Thu May 17, 2012 9:32 pm

Hello Bogleheads,
Facebook share price at IPO will be $38 and they issue 484.4mio shares which means they will $18.4b. So far so good.

Their market value at IPO is supposedly $104b. How do they calculate that?

The above numbers are from WSJ ... TopStories

Thank you.

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Re: Basic Question about Facebook IPO

Post by Langkawi » Thu May 17, 2012 9:54 pm

They're selling 484.4 millions shares but there are a couple of billion shares Facebook is retaining.
$104B = $38 x Total Shares Outstanding

See the S-1 filed with the SEC for details.

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Re: Basic Question about Facebook IPO

Post by CaliJim » Thu May 17, 2012 11:23 pm

Those other shares represent shares held by insiders, venture capitalists, employees (stock options), muralists, and the like.
-calijim- | | For more info, click this Wiki

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