Facebook is aiming to file for its initial public offering as early as next week, according to two people with knowledge of the matter quoted by businessweek.com.
The social network company is discussing a valuation of $75bn to $100bn, said the sources, who asked not to be identified because the plans haven’t been made public. Timing for the filing is still being discussed and may change, they said.
The IPO would provide funds to help Facebook maintain its expansion and fend off competition from Internet rivals such as Google and Twitter in the social network war. It was reported in November that the company had discussed raising $10bn in the offering.
Anupam Palit, an analyst at GreenCrest Capital Management LLC in New York, told Business Week that Facebook may set its price at the low end of the valuation range to entice investors and ensure the stock rises after the IPO.
“They might discount it a little bit in order to make sure the first couple days of trading are very strong,” he said.
Facebook is close to hiring Morgan Stanley to handle the deal, and Goldman Sachs Group will probably play a “major role” in the IPO, according to the Wall Street Journal. The newspaper was first to report that Facebook may file its paperwork as early as next week.
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