TODAY'S TOP STORIES
FONT-SIZE Plus   Neg
Share SHARE

Facebook IPO May Occur As Early As May 16: Reports

Facebook IPO May Occur As Early As May 16: Reports

A rumor has surfaced on the possible date of Facebook's initial public offering, suggesting that the most anticipated IPO of the world's largest social-networking site could occur as early as May 16. Several rumors circulated lately, indicating the launch dates of the IPO. However, CNBC has gone a step forward and locked upon two specific dates - May 16 or May 24.

Kate Kelly on CNBC's "Fast Money Halftime Report" citing sources said the launch date for the road show would be either May 7 or May 14. According to Kelly, Facebook's 'plan A' is to start trading on May 16 or May 17, while 'plan B' is to price the shares on May 24 and start trading the next day.

Kelly said Facebook will be looking to go public before May 28, the Memorial Day, as it would avoid going public on the holiday week when most of the investors would be on vacation.

Kelly also implied that Facebook would be considering shorter period for IPO road show, most probably 10 or 11 days, instead of the typical two full weeks. Facebook will also likely avoid international markets, and focus on domestic investors in venues such as New York, Silicon Valley and Boston.

Although, most investors, bankers, and market experts are positive on Facebook's IPO, Kelly said some bankers are concerned that the shorter period of marketing would harm the deal.

In any case, the hotly anticipated IPO is dependent on the Securities and Exchange Commission declaring the company's prospectus effective, and whether the acquisition of Instagram has any impact. Facebook yesterday agreed to buy Instagram, a photo-sharing app for smartphones, aggregating about $1 billion in cash and stock.

Last week rumors also suggested that Facebook has chosen the Nasdaq for listing instead of the New York Stock Exchange. Facebook is anticipated to trade under the ticker symbol "FB" after an initial public offer that is expected to raise over $5 billion.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.