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Facebook boosts IPO size

Facebook boosts IPO size
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Facebook on Wednesday increased the size of its initial public offering of shares by 25 percent.

The additional shares will be sold by early investors including PayPal co-founder Peter Thiel, Accel Partners’ James Breyer, investment manager Tiger Global Management and Goldman Sachs, the company said in a filing.

The company itself has not increased the number of shares it will sell.

That came after Facebook put up the target price range of the shares in what could be the third biggest US IPO ever, after Visa and General Motors.

It is now on track to raise as much as $16 billion (12.6 billion euros).

The increased offering is a reaction to strong investor demand for shares in the top social networking website despite worries about its long-term money making potential.

Those concerns over revenue growth were underscored when, days before the IPO, General Motors said it planned to pull out of advertising on Facebook.

“This is much more a spectacle, a media event and a cultural moment than it is an IPO,” said Max Wolff, an analyst at GreenCrest Capital. “This is not a game of models and fundamentals at this point.”

Facebook said that it arrived at the higher IPO price range after one week of marketing the offering.

That includes a cross-country roadshow in which CEO Mark Zuckerberg has taken the stage to lay out his vision for the company’s potential and its top priorities.