Facebook IPO To Be At $5 Billion

  • Set to file Wednesday US time
  • Lead book runner is to be Morgan Stanley
  • Might  up offer depending on interest

Rumour has it that Facebook will file to raise up to $5 billion in a preliminary IPO prospectus Wednesday morning American time.

While the amount does seem a lot smaller than some people were expecting, demand is likely to lead to an increase in the offering.

And if you are small time investor wanted in on the action don’t hold your breath. Facebook has hired five big hitters in the finance world to run the roll out including Goldman Sachs, Morgan Stanley and JP Morgan. There will be little on offer for mum and dad investors.

What will be interesting will be the amount each share will go for. With an estimated value of between US$80-100 billion, they will starting out at a premium. However, with the financial institutions around the world edgy due to the debt crisis in Europe, what the price of shares will be once the dust settles is another things altogether.