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Facebook to submit IPO papers

Company will begin process for initial public offering today

Facebook is set to submit the paperwork for its IPO today.
Facebook is set to submit the paperwork for its IPO today.

Facebook is likely to submit paperwork for its IPO today in the US, the company has selected Morgan Stanley and four other bookrunners to handle the mega-IPO, sources close to the deal told the International Financing Review (IFR).

The IPO had initially been expected to raise $10bn through selling 10% of the company, giving a market capitalisation of $100bn, although now the IPO is expected to raise $5bn. It is not clear what percentage of the company is being offered yet.

The social networking site has placed Morgan Stanley in the coveted lead left role, with Goldman Sachs, Bank of America Merrill Lynch, Barclays Capital and JP Morgan rounding out the initial list of bookrunners on the deal.

The timing of the IPO application seems to indicate that the company hopes to finalise the process by May, pending a smooth registration process with the SEC.

According to IFR, the final pricing of Facebook shares is unlikely to be settled for at least three months, making it unclear what valuation the company is targeting on the IPO.