Facebook Inc., the world’s largest social-networking service, is aiming to file for its initial public offering as early as the coming week, two people with knowledge of the matter said.
The company is discussing a valuation of $75 billion to $100 billion, said two people, who asked not to be identified because the plans haven’t been made public. Timing for the filing is still being discussed and may change, they said.
The IPO would provide funds to help Facebook maintain its expansion and fend off competition from Internet rivals such as Google Inc. and Twitter Inc. The company has discussed raising $10 billion in the offering, a person familiar with the matter said in November. Facebook may set its price at the low end of the valuation range to entice investors and ensure the stock rises after the IPO, said Anupam Palit, an analyst at GreenCrest Capital Management LLC in New York
“They might discount it a little bit in order to make sure the first couple days of trading are very strong,” he said.
Facebook is close to hiring Morgan Stanley to handle the deal, and Goldman Sachs Group will probably play a “major role” in the IPO, the Wall Street Journal said Jan. 27. The newspaper was first to report that Facebook may file its paperwork as early as the coming week.
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