Facebook IPO

[CJ]

The only undisputable fact is that several punters will make zillions as a result of the IPO ...

There have been a few interesting articles taht have come out about this. Like the grafetti artist who painted the facebook headoffice and took payment in shares. He should make about $200m out of that.

And Bono of U2 fame is to become the richest musician ever. Though more than half his money would have come from Facebook. If money is what defines people, does that make Bono an Investor rather than a musician?

Agreed. I think a great float to stag if you were lucky enough to get an allocation. ...But a horrible price to pay in the medium term - a lot of growth needs to be acheived to justify the US$75-100b price tag. Still, they make astounding profits for such a young business.

Agree. I will re-guess closer to the time but my guess is that the first trade will be about 30% higher than the IPO price before dropping down after a day or two or be just higher tha IPO price in the medium term (6 months).

My understanding is that there will only be 5% new shares issued. Added to that, alot of current investors who bought via the secondary market are locked in for about 6 months. As such, there will be very few existing shares being traded and with only 5% new (even if worth $5B plus), the IPO will definitely be great to stag.

[CJ]

Agree. I will re-guess closer to the time but my guess is that the first trade will be about 30% higher than the IPO price before dropping down after a day or two or be just higher tha IPO price in the medium term (6 months).

My understanding is that there will only be 5% new shares issued. Added to that, alot of current investors who bought via the secondary market are locked in for about 6 months. As such, there will be very few existing shares being traded and with only 5% new (even if worth $5B plus), the IPO will definitely be great to stag.

So they are raising $16B at a $104B valuation so just over 15% of the company.

My new guess is a good one to stag but over the next 6 months will be close to IPO value. There will be quite a lot of overhang as there were lots of people who got in early who will want to lock in some/all of the gain. This all depends on what announcements they make over this period. They have the potential to kill Google ads due to much more detailed info on each person.

[CJ]

My new guess is a good one to stag but over the next 6 months will be close to IPO value. There will be quite a lot of overhang as there were lots of people who got in early who will want to lock in some/all of the gain. This all depends on what announcements they make over this period. They have the potential to kill Google ads due to much more detailed info on each person.

It opened up about 10% but looks like the underwriters were doing a lot of buying late in teh day to ensure the price didn't drop below the list price.

I now expect it will go lower next week.

[drillfix]

I now expect it will go lower next week.

Best gig of all these insto's is playing both sides of the fence by taking the short side to buy it all back again.

You are right though CJ, lower it goes indeed.

As I type:

FB is now $33.63 giving it a loss of -12.04% for today so far, but knows where it will close, plenty of old green on the Dow tonight it seems though~!