Facebook sets IPO price at $38 per share, to start trading today

Facebook, the world’s most liking social networking site, record 900 millions active users, has strong demand by big money managers to be a part in the biggest Internet IPO in history.

As seeking more money scope, Facebook has set its IPO at least $16 billion for the company by selling 421.2 million shares and its early investors in a transaction that values Facebook at $104 billion.

On Thursday, Facebook raised its initial public offering of stock at $38 per share that makes a market value of US$104 billion, more than of Amazon and half that of Google‘s.

A big windfall for eight years old company is outcome of a year’s worth of Internet IPOs that began last May with trailblazer LinkedIn Corp, source reported, after that site of web have gone public with success.

Talking to reporters, Nick Einhorn, research analyst at IPO investment advisory firm Renaissance Capital said,”They could have gone public in 2009 at a much lower price,” adding, “They waited as long as they could to go public, so it makes sense that it’s a very large offering.”

With $16 billion U.S. IPO, Facebook is being the third-largest valued company to ever go public that more than 10 times of Google’s IPO raised in 2004 and the largest U.S. IPO of all time, Visa which raised $17.86 billion in 2008, according to data compiled by Renaissance Capital.

Recently, the company raised its price to US$38 a share to get more money to build on the features and services it offers and now big insiders’ investors or the banks will sell the stock to their clients at this price. As per source said, an early investor, who took a chance seeding the young social network with start-up funds six, seven and eight years ago, can reap big rewards.

Facebook‘s IPO is shaping up at this time, but something is also went wrong as General Motors decided to stop US$10 million worth of Facebook advertising.

Last month also site reported slow growth while it acknowledged that as of yet it has no way to make money from its biggest growth area–mobile.

All in all, every company go with success after hurdling with several problems and this time same done with Facebook’s CEO Mark Zuckerberg who is of 28, one of the world’s youngest billionaires, but counted the late Apple CEO Steve Jobs among his mentors. Although, he is selling about 30 million shares, but still will remain Facebook‘s largest shareholder.

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