Zuckerberg's casual approach to IPO

FACEBOOK CHIEF executive Mark Zuckerberg has attracted criticism from an influential US analyst for wearing his trademark hoodie and jeans to meetings with potential investors this week.

The social network is seeking to raise more than $10 billion (€7.7 billion) in a stock market debut later this month that would dwarf previous record-breaking tech initial public offerings, including those of Google and Netscape.

But Michael Pachter, an analyst for Wedbush Securities, slammed Zuckerberg (28), who will retain control of the company even after its floatation, for his choice of dress at an investor meeting in New York.

“Mark and his signature hoodie – he’s actually showing investors he doesn’t care that much, he’s going to be him,” Pachter said in an interview with Bloomberg TV.

“I think that’s a mark of immaturity. I think that he has to realise he’s bringing investors in as a new constituency right now and I think he’s got to show them the respect that they deserve, because he’s asking them for their money.”

Pachter said the Facebook founder would be more suitable for a role such as “chief product officer” or “chief user-experience officer” rather than being chief executive of the company which boasts 900 million users globally.

Despite the criticisms, Pachter last week became the first financial analyst to give Facebook a “buy” rating.

The format of Facebook’s pitch in New York also attracted some bad reviews from investors, who grumbled that the airing of a 30- minute video did not allow enough time for questions from the audience, according to analysts who spoke with Facebook officials.

At a breakfast pitch in Boston the next day – which Zuckerberg did not attend – the video was scrapped to allow time for more questions from analysts and potential investors.

The Boston event attracted about 200 people, including analysts, hedge-fund managers and Will Danoff, who manages the $84 billion Contrafund for Fidelity Investments.

Some of those who attended expressed disappointment that Zuckerberg did not make an appearance, but said they liked having more time to ask questions.

One analyst, who did not want to be named, said no reason was given for Zuckerberg’s absence. Facebook was not available to comment and reporters were not admitted to the presentation.

Facebook chief operating officer Sheryl Sandberg was present to answer potential investors’ questions, which ranged from the company’s strategy in China to revenue-per-customer trends, according to those who were there.

The eight-year-old social network that began life in Zuckerberg’s Harvard dorm room has indicated an IPO per-share range of $28 to $35, pegging the value of the company at between $77 billion and $96 billion. – (Additional reporting: Bloomberg, Reuters)