Facebook Ups Its Forecast: Says Shares Will Sell For $34 To $38 | WAMU 88.5 - American University Radio

NPR : News

Filed Under:

    Facebook Ups Its Forecast: Says Shares Will Sell For $34 To $38

    Strong demand for its first public sale of stock has led Facebook to raise its forecast for how much each share will sell for when the company goes public on Friday.

    "We anticipate that the initial public offering price will be between $34.00 and $38.00 per share," the company says in a statement filed earlier today with the Securities and Exchange Commission.

    Earlier, the social medial giant had expected shares would sell for $28 to $35 each.

    As Dow Jones Newswires says, "The Wall Street Journal reported late Monday that the company would raise the price due to overwhelming demand by investors." CNN.com adds that "Facebook executives and the company's IPO underwriters have spent the past two weeks on the road meeting with potential investors and measuring the demand for the company's stock."

    About 337 million shares are going on sale. Think you'll be able to get some at the initial price? Well, as The Associated Press reports, "you'll need Facebook friends at very high levels — or a lot of money. Most people who like the idea of owning Facebook's stock will have difficulty getting it at the offer price. ... Unless you know the right people at Facebook, you'll likely need to have a large, active account with one of the big banks or brokerage firms directly involved in the stock sale."

    The Wall Street Journal notes that of the 337 million shares, "only a fraction of that amount will go to small investors" because most brokerages have set "steep eligibility requirements" for those seeking to get in on the action. "For example, at Fidelity, clients must have at least $500,000 in their account or have made 36 trades in the past year. Long-tenured clients with the most assets and who trade the most frequently will have preference, says a spokesman."

    Copyright 2012 National Public Radio. To see more, visit http://www.npr.org/.

    NPR

    'Halt And Catch Fire' Explores What It Was Like For Women In '80s Tech

    Mackenzie Davis, lead actress in the AMC show, says she's more interested in the story of an underdog woman than of a "damaged, white, middle-class male figuring out his dreams."
    WAMU 88.5

    To Help Fight World Hunger, You Can Overeat At José Andrés' 'Dine-N-Dash'

    On June 9, 17 restaurants in Penn Quarter will take part in the Dine-N-Dash, an event to help José Andrés' non-profit World Central Kitchen fight hunger across the globe.
    NPR

    Democrat O'Malley To Announce Presidential Bid In Baltimore

    The former Maryland governor — Democrat Martin O'Malley — is expected to formally announce his candidacy on Saturday in Baltimore. For most voters he's a blank slate.
    NPR

    'Halt And Catch Fire' Explores What It Was Like For Women In '80s Tech

    Mackenzie Davis, lead actress in the AMC show, says she's more interested in the story of an underdog woman than of a "damaged, white, middle-class male figuring out his dreams."

    Leave a Comment

    Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.