After much wrangling, social network website Facebook has priced its IPO at $38 per share, instantly turning it into the largest tech IPO in history, and only the third largest IPO in the United States ever.
But traders wishing to buy shares in Facebook will have to wait a bit longer as the company is still waiting for the official green light. The Securities and Exchange Commission still has the task of declaring the IPO effective, before they are allowed to sell shares to everyone.
“The $38 IPO price is the rate at which Facebook’s underwriters (including lead banker Morgan Stanley) will sell shares to their clients, which typically include large institutional investors, mutual funds and hedge funds” CNN Money writes.
While shares have already been made available to individual investors, the general public will have to wait until the Nasdaq opens in the US on Friday morning, and even then it will not be immediately available.
“While the market opens at 9:30 am Eastern Time on Friday, Facebook’s shares won’t start trading instantly. It typically takes time – sometimes an hour or more – for newly listed shares to begin actively trading on the day of their public debut,” CNN added.
Facebook has a current valuation of $100-billion, but that could be pushed up further if Facebook staff and executives exercise their stock options, raising Facebook’s stock count to around 2.8 billion – making the official valuation closer to $107-billion.
Charlie Fripp – Consumer Tech editor