Facebook Ready to File for IPO

Tech world is anxiously waiting for the tech IPO of the year or perhaps of the decade. The Wall Street Journal has recently reported that the social networking giant is ready to file its paperwork regarding an Initial Public Offering on coming Wednesday.

If this IPO manages to pass, it would be the first largest tech IPO in history, producing about $10 billion for the social network. The previous largest tech IPO was by a German company that raised $5.9 billion back in 2000. Google’s IPO of 2005 failed to make any impression as it didn’t even manage to raise $2 billion.

We haven’t enough details available about the IPO as Faebook isn’t disclosing any details and WSJ’s source is also anonymous. However, looking at the track record of the Journal, one can hardly consider this report a rumor. The $10 billion share offering will bring a total valuation of $100 billion for the company, according to the paper, which is perfectly aligned with what we expected to be.

The evidence that gives us a hint of the approaching IPO is the halting of its trading in secondary markets for three days earlier last week.

The IPO is a clear evidence of why the social networking giant has been showing keen interest to get its product offerings in place. The company has also announced recently that it has started rolling out its new profile template, Timeline to the world. In addition to this, the company has also unveiled 60 applications that are tightly integrated into Timeline and also launched a process for developers to develop more Timeline applications.

Whenever Facebook will file its S-1 paperwork, it will be forced to enter a ‘quiet phase’ – with no product announcements, interviews or any other public statements.

Moreover, the Journal also says that the Wall Street giant Morgan Stanley will manage the offering Goldman Sachs will be “intimately involved.” Certainly, a shock for Goldman that managed a billion-dollar private share offering for the social networking giant at same time in 2011.

We have to wait and see when exactly Facebook go for its IPO and being a public company it would bring any positives or negatives.

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