SOME OF Facebook’s earliest backers plan to sell an additional $3 billion worth of shares in today’s initial public offering.
The move will increase the number of shares on offer by 25 per cent, with proceeds flowing to existing investors such as Goldman Sachs, Tiger Global Management and Accel Partners.
Investor demand has been stoked by a cross-country US roadshow over the past two weeks, allowing Facebook to increase the size of its offering from $12 billion to as much as $18 billion.
However, the company continues to rankle some large institutional investors who fear the IPO’s rising price and heavy insider selling could make Facebook shares more volatile after their market debut. The company lifted its price range to $34-$38 this week, from the $28-$35 initially indicated.–The Financial Times
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