FACEBOOK : THE MUCH AWAITED IPO !!!
Facebook has released a revised S-1 filing which list additional information on IPO.
The IPO would value Facebook at $74.8 billion(Rs.3,96,440 Cr), based on total of 2.138 billion Class A & B shares outstanding after the offering, assuming a $35 share price.
Total shares offered will be 33,74,15,352 at a proposed price range of $28-$35. It is expected that they could fix price at $31.50/sh.
Facebook estimates that the net proceeds from sale of the Class A common stock that are offered will be approximately $5.6 billion (Rs.29,680 Cr), assuming an IPO price of $31.50/sh.
Primary shares (proceeds going to company) will be $180 million (Rs.954 Cr), Selling stockholders shares will be getting $157.4 million (Rs.834.22 Cr) these proceeds will not go to the company.
Mark Zuckerberg (28) the founder of Facebook will as Chairman & CEO, exercise as outstanding stock option with respect to 6,00,00,000 shares of Class B common stock and will then offer 3,02,00,000 of those shares as Class A common stock in Initial Public Offering. Facebook expects that the substantial majority of the net proceeds Mr. Zuckerberg will receive upon such sale will be used to satisfy taxes that he will incur in connection with the option exercise.
Zuckerberg would control over 57.30% of the capital stock voting power following the IPO. In February Facebook reported Earnings of $1 billion (Rs.5,300 Cr) on the Sales of $3.71 billion (Rs. 19663 Cr), Facebook reported Earnings per share of $0.43 (Rs.22.79) Dec 2011. Facebook reported $381 million in Income from Operations; Net income of $137 million (Rs.726 Cr), Facebook reported Earnings per share of $0.09 (Rs.4.77) 31st March 2012.
Facebook says it has $3.91 billion (Rs.20,723 Cr) in cash as of March 31, 2012. It estimates it will have $9.511 billion (Rs.50,408.30 Cr) in cash assuming a $31.50 IPO prices.
Facebook debts are $1,587 million (Rs.8,411.1 Cr) which will remain same after IPO, Total Stockholder’s Equity is at $5,597 million (Rs.29,664.10 Cr) which will be $11,198 million (Rs.59,349.40 Cr) after IPO.
The main purpose of IPO is to create a public market for the Class A common stock and thereby enable future access to the public equity markets by the company and its employees, and obtain additional capital, and facilitate an orderly distribution of shares for the selling stockholders. Facebook intends to use the net proceeds from IPO for working capital and other general corporate purposes, they may use some of the net proceeds to satisfy a portion of the anticipated tax withholding and remittance obligation related to the initial settlement of company’s outstanding RSU’s, they may also use a portion of the proceeds for acquisitions of complementary business, technologies or other assets.
The shares are expected to be priced on May 17 evening, with trading beginning on May 18, 2012. Facebook to list its stock on Nasdaq under the ticker "FB", Facebook will be compared with GOOGLE, GROUPON, ZYNGA. At the assumed market capitalization of close to $100 billion (Rs.5,30,000 Cr) FB will be competing AMAZON.COM, CISCO SYSTEMS in terms of market capitalization.
Facebook would have Price to Earnings of about 80 times its 2011 earnings. Its valuation is 19 times its revenue, which is close to 21 times revenue valuation of its faster- growing competitor LinkedIn. Experts believe that these are nosebleed multiples and Facebook needs to good growth to support such absurd multiples.
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1 comment:
HI friends,
I got some data on Markets - which are as on data dated 2010 - there were 31 lakhs registered customers/investors on NSE from which only 2 lakhs (6 %) of these had done 90 % of the total volume on NSE. Looking minutely on this data we get that - 50 % of the exchange turnover was done by only 450 customers, 60 % of the exchange turnover was done by only 1500 customers, 70 % of the exchange turnover was done by only 8700 customers, and 80 % of the exchange turnover was done by only 41,000 customers.
Let’s have a look at DERIVATIVES - which is shocking that only 3.77 % dominates nearly 90 % of total F&O Turnover. There were 5.5 lakhs customers who do DERIVATIVES trading from which only 3.77 % controls a nearly 90 % of the total derivatives turnover. THIS IS DISGUSTING !!!
After knowing that only few runs the cash & F&O segment more shocking is that only few scrips are concentrated for the trading, there were only 10 scrips which contributed 24 % of Cash segment volume, whereas only 10 scrips contributed 38 % of total derivatives turnover.
WE SAY THAT OUR MARKETS HAVE MATURED ..IS THIS THE MATURITY ....ARE WE RUNNING MARKETS FOR FEW PEOPLE ...????
ARE THE NEWS FLOWS OR REPORTS TO FOOL INNOCENT INVESTOR WHO PUTS HIS HARD EARNED MONEY...WHO'S GOING TO LOOK INTO THIS... I AM SURE THAT EXCHANGES & THE MARKET REGULATOR MUST BE HAVING FAR MORE DEEPEN DATA THEN THIS....AND THAT's THE REASON BUY FUNDAMENTALLY STRONG COMPANIES..WHICH DEFINITELY GIVE YOU GREAT RETURNS IN LONG RUN !!!
READ HERE TO KNOW MORE ON LONG TERM INVESTING - http://www.bhavikkshah.blogspot.in/2011/12/why-long-term-investing-pays-you-back.html
VISIT - http://www.bhavikkshah.blogspot.in/
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