Facebook to File for $5 Billion IPO on Wednesday (Report)

Mark Zuckerberg
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The final fundraising target of the social network, led by CEO Mark Zuckerberg, could end up higher as previous reports had suggested a stock market listing that could raise as much as $10 billion.

NEW YORK -Social networking giant Facebook will file its IPO registration statement early Wednesday as expected, but the filing will target to raise only $5 billion initially, according to the International Financing Review.

Facebook, led by CEO Mark Zuckerberg, had so far been expected to raise $10 billion by going public, but the New York Times reported that the final fundraising target could be significantly higher than $5 billion depending on investor demand.

With the company's shares expected to be priced only in the spring, the network's market valuation in the IPO remains unclear. IFR highlighted though that recent trading in Facebook shares on private exchanges suggests a valuation of $80 billion-plus. Others have suggested a valuation range of $75 billion-$100 billion, which would make it one of the largest IPOs in U.S. corporate history.

Assuming a smooth review by the SEC, the filing puts Facebook on track to start trading its stock by May, the IFR report said.

IFR also reported that the social network has picked five investment banks to run its IPO, led by Morgan Stanley, which also led the IPOs of social gaming firm Zynga and Groupon. Goldman Sachs, Bank of America Merrill Lynch, Barclays Capital and JP Morgan are the other so-called bookrunners.

Meanwhile, the Wall Street Journal reported that Facebook likely won't disclose on Wednesday if it has chosen the New York Stock Exchange or the Nasdaq Stock Market for its stock listing.

Email: Georg.Szalai@thr.com

Twitter: @georgszalai