Monday, May 14, 2012

Facebook informs investors new IPO range is from $34 - $38

Facebook has upped the range on the IPO pricing of its stock, with investors now being told the price range for Facebook stock will be from $34 to $38. Earlier, the company said it would price its shares from $28 to $35.

At the upper end of its price range, Facebook's valuation would be just above $100 billion, fully diluted.

This information is coming from sources close to the situation, not Facebook itself. The official pricing for the widely anticipated offering of the social networking giant will take place on Thursday, those same sources confirmed. The IPO will be on Friday under the ticker symbol “FB,” on the NASDAQ market.

However, that price is for the one percent, who can get in on an IPO at the IPO's offering price. By the time the stock reaches the 99 percent, it will most likely have climbed significantly in price. Another source has told Bloomberg that Facebook will stop taking orders tomorrow for its initial public offering, two days ahead of schedule, because the offer of 337.4 million shares has been oversubscribed.

Meanwhile, excitement over the IPO continues to build, with any news around the Facebook IPO capturing wide interest. So, if you can't buy a number of shares, you might just want to buy one, in paper form, not to make money off of, but to collect. Facebook is facilitating that desire by announcing in its IPO filing that it will be offering paper shares of its stock, something uncommon in this age of electronic trading.

Folks looking to buy on ceremonial Facebook share can turn to sites such as and

The price of such a collectible won't be cheap, though. Both and charge $39 for their service, to cover purchasing the share and acquiring the certificate. Given the range of the stock as noted above, the collectible could run double the cost of a normal share.

Of course, that price range is really those who can get into the IPO, not for the people who would normally be buying one of these collectible shares.

If, however, Facebook stock ever rises to the price heights of Apple shares, you might just want to unload that ceremonial share. Just remember, if you do, that you must deposit any such shares with a broker, and you must surrender your paper certificates.

Perhaps though, if a share of Facebook stock was in the Apple range, and you managed to get it for, say, $80 to $100, you might not mind parting with it. Or would you?ed to get it for, say, $80 to $100, perhaps you wouldn't mind parting with it. Or would you?

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