Facebook May File For IPO Next WednesdayJanuary 27, 2012 1:11 pm ·
Although the “timing is still being discussed,” says the Wall Street Journal, it sounds like Facebook may finally be ready to file its papers for an initial public offering as soon as next Wednesday. This is all according to “people familiar with the matter,” notes the Friday morning report.
One of the anonymous tipsters went on to divulge that the social media giant is looking at a valuation of somewhere between $75 billion and $100 billion and that the likely lead-underwriter-to-be is none other than Morgan Stanley. Currently holding the “lead left” position on Facebook’s IPO documents that will be filed with the Securities and Exchange Commission, the sources continued, Morgan Stanley has established itself as the frontrunner as social site has made its way toward filing day.
The same “familiar people” went on to say that Facebook could raise as much as $10 billion as it gets prepares to go public.
This WSJ report comes after Facebook placed a three-day halt on trading on Wednesday, causing some to begin speculating that filing time is getting close. According to a Bloomberg report, it isn’t uncommon for companies to suspend trading as they prepare to file. This is done in order “to make sure that investors can’t buy or sell until all the information is public.”
At the same time, however, the same Bloomberg article warns that this isn’t always the case. That is, a trade freeze doesn’t necessarily mean that a Facebook IPO is imminent.
However, it’s difficult to not to make such a connection, given the years that this hotly debated move has been in the making.
Meanwhile, Facebook is yet to respond to the WSJ report or the speculation caused the trading freeze earlier this week. And given Facebook’s reputation for being non-committal and secretive until the last minute, chances are they won’t say anything until its already happening.