Friday, May 18, 2012
Facebook shares open at $ 42 per share.
Shares, which trade under the FB symbol, were priced at $38 apiece.
The price gave Facebook a market value of $104 billion. With the share price surging 11 per cent, the company’s market value has soared to $ 115 billion.
From his headquarters in Menlo Park, California, Facebook chief executive Mark Zuckerberg rang the opening bell on the US Nasdaq market on Friday to announce the listing of his eight-year-old social networking company.
Facebook is larger than Starbucks and Hewlett-Packard combined.
The pricing indicates high expectations despite ongoing concerns about Facebook’s long-term money-making potential.
Frenzied demand, especially from individual investors, hoping to buy into an Internet juggernaut that touches hundreds of millions of people every day, could drive Facebook well above $38 a share.
Analysts have been divided on how high the price might go on the first day of trade, with some expecting a relatively modest gain of 10-20 per cent, while others said anything short of a 50 per cent jump would be disappointing.
Shares to the extent of an 18 per cent stake in the company were offered in the IPO.
The IPO will be the largest by a US Internet company and the second-largest in US history after Visa.