Facebook in Record IPO Listing
Monday, May 21, 2012 The social networking giant Facebook made its long awaited initial public offering (IPO) on 17 May 2012. Facebook is now listed on the Nasdaq stock Exchange and raised a record $16 billion from the IPO. The shares were listed at $38 and the company is now valued at $104 billion making it the largest IPO in history.
Founder Mark Zuckerberg is rumoured to face a hefty tax bill estimated in the region of $2 billion. It is no surprise to hear that he has announced that he will marry his long term girlfriend Priscilla Chan during the week of the IPO. Could he have been influenced by tax planning perhaps?
Many critics believe the company to be overvalued as the share price is 54 times above currently projected earnings. The share price dropped 13% on the first day of trading, suggesting that the market may share this view. However, Facebook has over 900 million active users and has significant marketing potential.
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