Facebook announced terms for its IPO on Thursday afternoon. It plans to raise $10.6 billion, making it the fifth largest US IPO ever, by offering 337.4 million shares (47% insider) at a price range of $28 to $35. At the midpoint of the range, Facebook would command a fully diluted market value of $86.2 billion. Mark Zuckerberg will sell 6% of his stake, largely for tax purposes. Facebook expects to receive approximately $5.6 billion in net proceeds, which will be used for working capital and general corporate purposes.
Facebook, which booked $4 billion in sales for the 12 months ended 3/31/2012, plans to list on the NASDAQ under the symbol FB. Pricing is expected to take place on May 17 for trading on Friday, May 18. Eleven banks are acting as bookrunners, led by Morgan Stanley, J.P. Morgan and Goldman Sachs.
