Facebook has finally set a price range for its upcoming initial public offering, telling the market it plans to sell shares at between $US28-$US35, in a move that will vastly increase the fortunes of chief executive Mark Zuckerberg and a score of other shareholders.
The updated market filing reveals the social networking giant plans to raise up to $US13 billion, while the price range indicates the company could be worth as much as $US77-$US96 billion.
The company is reported to have set Friday, May 18 as its IPO date.
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The pricing indicates Zuckerberg’s total holding is worth as much as $US18.7 billion, while he will hold on to 57% of voting power even after the IPO has taken place.
Zuckerberg isn’t the only company director selling shares. Various investment companies and executives are keen to sell their stock in what could be one of the most successful technology listings in recent history; early investors stand to recognise a huge return.
Most are selling a minority of their shares and are likely to be waiting to see how the IPO performs in the hope of selling shares later on.
Some are sitting the IPO out. Chief operating officer Sheryl Sandberg isn’t selling her shares, although they’ll be worth as much as $US66 million at the highest valuation. Former president and advisor Sean Parker isn’t selling either, although his shares will be worth a huge $US2.4 billion.
Dustin Moskovitz, one of the company’s earliest co-founders, also won’t be selling even though his 133 million shares will be worth $US4.68 billion at the high end.
However, there are plenty more investors and companies preparing to sell their stock and reap a payday. Here are some of the more prominent shareholders selling their stock – and about to make a fortune in the process.
The company’s founder and chief executive will sell 30.2 million shares out of his entire holding, worth as much as $US1.06 billion at the high end. He’s also selling a small 5.6% share of his total stake, and in the end will own 503 million shares – leaving him with a fortune of $US17.6 billion.
However, the updated Securities and Exchange Commission filing suggests Zuckerberg will be using most of the money to fulfil tax obligations.
The LinkedIn founder invested $40,000 in Facebook back when it first started. He’s selling a fifth of his stake for about $US33 million, with the rest of his stake worth $US132 million.
Breyer was one of the earliest investors in Facebook and his company Accel Partners, is selling 38 million shares, equating to $US1.3 billion at the high end. He owns many of these shares personally as well.
PayPal founder Peter Thiel is selling 7.7 million of his shares, worth $US271 million at the high end of the valuation. The rest of his stake would be worth $US920 million.
The founder and chief executive of social gaming company Zynga invested along with Reid Hoffman, and now he’s selling one million shares with a reward worth $US35 million. He’ll still keep about $US150 million worth of stock.
Microsoft’s early courting of Facebook has paid off. The company’s selling 6.5 million shares, worth as much as $US244 million.
Digital Sky Technologies
This Russian investment company has its hands all over Silicon Valley, and is about to be rewarded for it. It’s selling 26 million shares worth $US918 million at the high end, and as much as $US735 million at the low end.