Facebook, the superpower of all social networks, will become a public company today, and reports say it chose Morgan Stanley to lead the initial public offering. Sources had originally estimated the business plan would raise $5 billion, but are now saying it will undoubtedly increase to as much as a whopping $10 billion. For many of the network’s 8 million users out there, this means that they could possibly get a piece of the IPO.
Jack Ablin, a chief investment officer for Harris Private Bank in Chicago, called this a “huge windfall” for Morgan Stanley. He said, “They have led so many high-profile social media deals in the last year [so they will] get this deal done.” Morgan Stanley led two huge Internet IPOs last year: Zynga and Groupon. Facebook is trying to keep the matter as private as possible (ha, good luck with that!), but investors and IPO specialists are anticipating some type of provision for Facebook users to perhaps “get in on the action.” One IPO senior partner said, “Pandemonium is what I expect in terms of demand for this stock.” He should expect nothing less; this is several times bigger than Google’s IPO in 2004.
Stock trading usually begins three to four months after the initial filing. Although nothing has been confirmed by Facebook yet, people are eager to get in on the deal. Facebook’s IPO is expected to be the biggest ever by an Internet or technology company. For those who have been using Facebook since its creation, the possibility of making some money off of something that has become a part of daily life is beyond exciting. Will you invest in Facebook stock?