Facebook has unveiled plans for its much-aniticipated stock market flotation, seeking to raise $5bn (£3.16bn), about half the amount many analysts expected. The move has also revealed the social network’s complete user figures and revenues for last year.
Despite lowering analyst expectations, the initial public offering (IPO) is still expected to be the biggest sale of shares by an internet company.
The social networking market leader filed its intention to float with the Securities and Exchange Commission after the US stock markets closed. The float could happen as early as May this year.
The documents revealed for the first time information about the company that had previously been the subject of speculation.
This included news that Facebook’s net income in 2011 rose 65% to $1bn, off revenues of $3.71bn.
It was disclosed that founder Mark Zuckerberg owns 28.4% of Facebook, and also that the network now has 845 million monthly users and 443 million daily users.
Facebook, just eight years old and started by Harvard University students, now has 845 million users and made a profit of $1bn last year.
A letter from Facebopok founder Mark Zuckerberg said: “Facebook was not originally created to be a company. It was built to accomplish a social mission – to make the world more open and connected. We think it’s important that everyone who invests in Facebook understands what this mission means to us, how we make decisions and why we do the things we do.”
The $5bn being raised would be the most for an internet initial public offering since Google and its early backers raised $1.67bn in 2004.
The final amount Facebook will raise is likely to change as Facebook’s bankers gauge the investor demand for the shares over the coming months.
Facebook is the latest in a series of online firms to sell shares to the public in recent months.
Online voucher firm Groupon went public in November 2011 and online games maker Zynga in December 2011.
Zynga’s stock market value immediately fell below its asking price on the first day of trading, whilst Groupon only climbed past its offer price three months after the float.
Shares in the social networking site Linkedin fell below their May 2011 offer price after its shares became freely tradeable.
Read the official Facebook stock marklet registration statement here
