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Entries in Initial Public Offering (20)

Friday
May112012

Facebook Co-Founder Denounces US Citizenship

Jim Spellman/WireImage(WASHINGTON) -- Facebook co-founder Eduardo Saverin stands to make billions when Facebook goes public next week. And now, ahead of that IPO, the 30-year-old has renounced his American citizenship, apparently to trim his tax liability.

Saverin was born in Brazil and lives in Singapore, where there is no capital gains tax, and a spokesman told Bloomberg that Saverin "recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period."

A record number of Americans renounced their citizenship last year, presumably to lower their tax burden.

Copyright 2012 ABC News Radio

Thursday
May032012

Facebook IPO May Value Company at $85 to $95 Billion

Peter Foley/Bloomberg via Getty Images(NEW YORK) -- Facebook announced that it is raising as much as $11.8 billion in stock, which would make this the biggest Internet IPO since Google's in 2004, with an offering price between $28 and $35 a share.

The company filed with the Securities and Exchange Commission on Thursday afternoon, stating it will sell 337 million shares. The share price range could value the company from $85 billion to $95 billion, The Wall Street Journal reported.

In the build-up of events leading to Facebook's initial public offering of its stock, what happens next is the "road show"—usually a two-week, multi-city tour by top management, where potential buyers get the chance to ask questions. These events are by invitation only.

Copyright 2012 ABC News Radio

Friday
Apr062012

Facebook Chooses Nasdaq to List Its Shares

Peter Foley/Bloomberg via Getty Images(NEW YORK) -- As it readies for its initial public offering, Facebook has reportedly chosen a stock exchange to list its shares.

Citing people familiar with the matter, the Wall Street Journal says the social media network will go with Nasdaq and will trade under the symbol FB.  Shares are expected to go on sale as early as next month.

Facebook filed papers online with the Securities and Exchange Commission in February to raise at least $5 billion and begin selling stock this spring.  The IPO is regarded as the year's most widely anticipated one.

Copyright 2012 ABC News Radio

Friday
Mar022012

Yelp Shares Soar After Initial Public Offering

Scott Eells/Bloomberg via Getty Images(NEW YORK) -- In one of the most highly anticipated IPOs of the year, shares of the unprofitable online local business rating and directory service Yelp soared Friday.

After Jeremy Stoppelman, co-founder and CEO of Yelp, rung the opening bell at the New York Stock Exchange Friday morning, he made the first trade for his company according to tradition at the exchange.  Investors crowded around the floor, watching Stoppelman begin arguably the hottest tech IPO this year after Facebook.
 
The online review site priced its IPO at $15 a share, above its expected range, Thursday night.  The tech company, based in San Francisco, raised $107.25 million, valuing it at $898.1 million.

By 10:50 a.m., the shares had surged to $24.15, or 61 percent, on the New York Stock Exchange.  This comes even though competition in the local ad and listings market is fierce and Yelp hasn't had a profit since at least 2007.

Copyright 2012 ABC News Radio

Thursday
Feb022012

Facebook IPO Expected to Boost Silicon Valley Economy

Justin Sullivan/Getty Images(MILLBRAE, Calif.) -- Facebook's initial public offering (IPO) is expected to be a boon not just to the technology sector but to local business owners who've said they are smarter and better prepared to avoid the disaster of the previous dotcom bubble.

Leonard Mezhvinsky, a developer in Millbrae, Calif., has spent the past three years building a property in Hillsborough, 30 minutes north of Facebook's headquarters in Menlo Park.  He expects the $13 million, six-bedroom house to be completed in August or September, just in time for a Facebook employee -- newly rich from the initial public offering -- to spend some money. The IPO could mint hundreds of potential millionaires as soon as the company goes public.

"It's very simple," Mezhvinsky said when asked how Facebook's IPO would affect local real estate.  "The Facebook IPO will create in an instant multiple millionaires who when they sell their stock to cash out will be looking for higher-end properties in and outside San Francisco."

Mezhvinsky, a principal at Sieger Property Development, said he had seen an increase in activity in the local real estate market.  He said the growing interest in real estate may be because of multi-millionaires cashing out stock, or anticipating cash, after initial public offerings from such nearby companies as gamemaker Zynga in December and social media site LinkedIn last May.

Early employees, or those with higher tenure, such as founder and CEO Mark Zuckerberg and many of his Harvard peers, along with the executive team, are most likely to have the most shares among the company's more than 3,000 employees.

Mezhvinsky expects the wealth created from Facebook's IPO to dwarf that of of Zynga and LinkedIn combined, although it will not be instantaneous, as employees with stock options will have to wait months to cash in their stock, and the newly wealthy usually take some time to adjust to their newfound wealth, he said.

"They still live in apartments and small houses and suddenly they have $20 million of IPO stock," said Mezhvinsky.

There are also rumors of speculators snatching up property near Facebook's headquarters, in the hope of flipping properties to newly rich employees.  But Mezhvinsky said developers were much more cautious now than they were before the dotcom bubble more than a decade ago.

"The developers who weren't cautious are probably bankrupt now.  Those who were semi-cautious are now fully cautious," he said. "But as the economy improves in three or four years that cautiousness will go away as it always does."

Copyright 2012 ABC News Radio

Wednesday
Feb012012

Facebook Expected to File for IPO Wednesday

Peter Foley/Bloomberg via Getty Images(NEW YORK) -- Facebook, the company that started eight years ago in a Harvard dorm room and became a global phenomenon, is expected to file one of the largest initial public offerings in history on Wednesday.

The social media giant will reportedly file a form S-1 with the Securities and Exchange Commission (SEC), the first step towards becoming a publicly traded company on Wall Street. The form will be the first insight into the workings of what has so far been a fairly opaque company.  It will list Facebook’s revenue and profits, and is expected to set the company’s value between $75 and $100 billion.

"It's an exciting thing.  This is one of the big moments people have been looking forward to in the IPO or you know, the sphere of stocks coming public.  Facebook's really been the big fish everybody's been looking forward to," says Andrew Toner, a tech analyst for The Motley Fool.

Toner adds that if the company's debut price hits around $100 million, Facebook, "will actually be the 25th biggest publicly traded U.S. company."

Investors will likely have to wait until May to start buying stock in the company, however.  But when that first day of trading does come, Toner says, "Expect big, big things and big, big numbers."

video platform video management video solutions video player

Copyright 2012 ABC News Radio

Monday
Jan302012

Facebook IPO: What to Expect

Peter Foley/Bloomberg via Getty Images(NEW YORK) -- With all the buzz surrounding a possible Facebook IPO, where do things stand right now?

Facebook is reportedly expected to file a form S-1 with the SEC this week. The form will be the first insight into the workings of what has so far been a fairly opaque company. The form will list the company’s revenue and profits, and is expected to set the company’s value between $75 and $100 billion. This is a required step before a company can begin trading publicly.

It will likely take until May for Facebook stock to actually begin trading on a stock exchange. It is not yet clear which exchange Facebook will trade on.

This is expected to be the IPO event of the year, and possibly the decade. Analysts say that this offering will change the Internet sector, creating what will be one of the largest Internet companies.

Why go public anyway? Under SEC regulations Facebook has to make certain financial information public because the company has more than 500 investors. The deadline to file this information expires in April.

Facebook CEO Mark Zuckerberg reportedly decided to go public once it became clear that the company had become too big to keep its finances private. By going public the company will have access to new cash, and it will also be able to use the value of its stock to acquire other companies and to reward its employees.

Facebook’s 3,000 employees are now poised to become a brand-new gang of Silicon Valley millionaires and billionaires.

According to wide speculation and reporting, the form S-1 filing will happen after the stock market closes on Wednesday. The rumor mill has been wrong about this before, though even if there is no filing this Wednesday, there will likely be one soon thereafter.

Copyright 2012 ABC News Radio

Friday
Jan272012

Facebook IPO Next Week?

Justin Sullivan/Getty Images(NEW YORK) -- Facebook could file papers for its IPO, or initial public offering of company stock, as early as next Wednesday, according to the Wall Street Journal, which cited unnamed people familiar with the matter.

Facebook itself has not commented, nor have Morgan Stanley or Goldman Sachs, which have been vying to handle the offering.

Jonathan Thaw of Facebook sent an email to ABC News: “Our position on this is that we don’t participate in IPO-related speculation.”

Previous reports said Facebook would likely be valued at $75-100 billion.

“If it comes to pass, this will be the largest tech IPO in history, yielding around $10 billion for the social network,” wrote Chris Taylor of Mashable. “Google’s 2005 IPO, as big a deal as it was, didn’t even reach the $2 billion mark.”

Facebook claims more than 800 million active users worldwide.

Copyright 2012 ABC News Radio

Monday
Jul112011

Dunkin' Brands Looks to Raise $460M in Initial Offering

PRNewsFoto/Dunkin' Donuts(WASHINGTON) -- Dunkin' Brands Group Inc., the company that owns the Dunkin’ Donuts coffee and doughnut chain, is filing an initial public offering to raise as much as $460.6 million, 15 percent more than the company had once planned.

“They have really shown some strong improvement when you take a look at their operation,” said Bloomberg’s Sheila Dharmarajan. “Sales have been up...They have been showing profits.”

According to a filing with the U.S. Securities and Exchange Commission, the company is offering 22.3 million shares for $16 to $18 each.

Copyright 2011 ABC News Radio

Saturday
Feb122011

Online Music Player Pandora Plans to Go Public

Photo Courtesy - Getty Images(OAKLAND) -- Online music provider Pandora Media on Friday announced that it plans to go public and will attempt to raise up to $100 million through sales of stock.

The company has filed the necessary paperwork with the Securities and Exchange Commission in the proposed initial public offering, with the aim of generating funds to help expand its operations. For the fiscal year ending Jan. 31, 2010, Pandora raked in $55.1 million in revenue, and reported a loss of $16.8 million. For the period of Feb. 1, 2010, through Oct. 31, 2010, the company’s reported loss wasn’t as severe, dipping to $300,000, while its revenue shot up significantly to $90.1 million.

According to reports, Pandora, which generates most of its revenue from advertising and subscription fees, spends a hefty amount on licensing fees. The company says it currently has some 800,000 songs in its database and over 80 million users, but since most of the listeners choose not to opt for the paid subscription, consumers aren't a major source of revenue. Pandora’s attempt to go public could possibly lead to it posting its first profit.

Copyright 2011 ABC News Radio

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