Economic
news reports say social networking site Facebook will seek to raise as
much as $5 billion in its initial public offering of stocks, which would
place it among the world's largest IPOs.
The online company is expected Wednesday to file paperwork for its
initial stock offering, one of the mostly hotly anticipated financial
events of 2012. The actual stock sale is likely to come a few months
later, and some analysts estimate the company's overall market value
will reach as much as $100 billion.
Several
sources reported Tuesday that Facebook's $5 billion target could be
raised significantly once they gauge investor demand. There had been
speculation the company would sell shares worth up to $10 billion.
So far, Google holds the record for the largest initial public offering
of stocks from a U.S. Internet company. In 2004, the search engine
powerhouse raised a bit less than $2 billion in its offering.
Companies use IPOs to raise money to expand.
Morgan Stanley is expected to be the lead underwriter for Facebook's
IPO.
