Facebook has announced the price range for its shares when they go on sale to the public for the first time. They will cost between $28 and $35 each (21-26 euros).
The social networking website hopes to raise at least 10.6 billion dollars (8.1 billion euros) and the company would be valued at at least 75 billion dollars.
That makes market watchers, like Fidel Helmer in Frankfurt, wary: “There are certainly enough people interested in buying the shares. But the nominal value of Facebook at seventy five billion US dollars is quite high and it reminds me a bit of the situation of the markets when we saw the internet bubble burst.
Facebook founder Mark Zuckerberg’s stake is set to be worth $17.6 billion dollars (13.4 billion euros).
But that will depend on the final price which could be higher if there is a lot of demand for the shares and some traders anticipate it will be higher in what will be one of the largest US share deals ever.