If you have been living in a cave for the past couple years, let me bring you up to speed. Facebook (FB) is going public this week. The excitement surrounding the IPO has been the highest I can remember since Google went public in 2004. The two words being thrown around last week were “highly oversubscribed”. Pretty much meaning everybody wants it, no matter what the price. I can understand some of the hype as retail investors love IPO’s of companies they see frequently and use their products often. No one disputes that Facebook is one of the best known brands in the world.
So before I go any further, here are the basics of this massive offering as it stands today: Facebook is offering 337.4 million shares at between $28 and $35 per share. It hopes to raise $11 billion and this give it a market cap of $67.4 billion. The final prospectus has yet to be declared effective by the SEC and therefore all this information is still subject to change before May 18th (the date Facebook plans to begin trading on the public markets).
Obviously, this being the most sought after and talked about IPO in years, instead of boring readers with Facebook’s numbers; which have been thrust down investors throats for weeks now, I thought I would write about how no one should hold Facebook after the IPO……Read The Full Article Here