The company is discussing an evaluation of 75 billion to 100 billion dollars, said that two people, who asked not to be identified because the plans have not been made public. Time for filing are still under discussion and may change, they said.
The IPO would provide funds to help maintain its expansion and fend off competition from Internet rivals like Google Inc. (GOOG) and Twitter, Inc. Facebook discussed lifting the company 10 billion dollars in the offer, a person familiar with the matter said in November. Facebook may set its price at low end of range evaluation to entice investors and ensure the stock rises after IPO, said Anupam Palit, GreenCrest Capital Management Analyst LLC in New York.
"You could discount is a bit in order to make sure the first couple days of negotiation are very strong," he said.
Facebook is close to the hiring of Morgan Stanley to handle the affair and Goldman Sachs Group Inc. (GS) will probably be a "important" role in the IPO, the Wall Street Journal said yesterday. The newspaper was the first report that Facebook can present his paperwork already next week.
Larry Yu, a spokesman of Menlo Park, California-based Facebook, declined to comment, as did representatives of Goldman Sachs and Morgan Stanley (MS), both based in New York.
Suspension of trading
Facebook's shareholders in front of a three-day suspension of trading on secondary markets that lasted through yesterday, people with knowledge of the matter said this week. Some buy and sell orders could be made, transactions would not have been processed by Facebook at Fenwick & West LLC, people said.
Stop trading, which had allowed employees and stakeholders to buy and sell shares, does not mean the filing is imminent, the people said. Still, some companies to suspend trading in front of a store to make sure that investors cannot trade actions until all information is public, said Sam Hamadeh, chief executive officer of PrivCo based in New York.
A halt Commerce also may represent an effort by businesses to ascertain how many shareholders.
Co-founded by Mark Zuckerberg in 2004 in a Harvard University dormitory, Facebook has amassed more than 800 million users with a user-friendly website that allows anyone with an Internet connection to build profile pages, send video and photos and interact with friends. The company has touched by competitors like MySpace Inc. and generates sales from different advertisers such as AT & T Inc. (T), Best Buy co and Sony Corp.
IPO Surges
Facebook would follow a flurry of social-media holding company IPOs in 2011, the biggest year for Internet deals in the United States in more than a decade, according to data compiled by Bloomberg. Nineteen companies generated 6.6 billion in 2011-the most since 2000, when 101 companies generated 11 billion. Professional networking site LinkedIn Corp., streaming music service Pandora Media Inc., (P) per day-deal site Groupon Inc. and actions of social gaming company Zynga Inc. sold all last year.
Facebook expects to be required by U.S. regulators to disclose its financial results by 30 April, if not go public by then, the company said last year when it announced an investment from Goldman Sachs and other supporters. The investment of 1.5 billion dollars the company valued at 50 billion dollars.
Facebook has decided to wait until 2012 for IPO give Zuckerberg more time to gain users and increase your sales, people familiar with the matter said in 2010.
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