Facebook expected to initiate filing process at Securities and Exchange Commission in January – Part 1

Once rumoured to initiate the filing process in December, Facebook—the social network—is nowhere near the process to go public. The anticipated Initial Public Offering from the company is expected at the end of the second half of calendar year 2012. However, if Facebook needs to go public by the end of May or somewhere in June, they need to file for intention at the Securities and Exchange Commission first.

Given the recent examples of Groupon and Zynga, the investigation process takes almost four to five months. Zynga took almost five months before it could offer the first stack of shares in the stock market.

If Facebook initiates the filing process this month, the process might allow the company to initial the IPO at the end of May. However, there are certain prerequisites to file for the intention at SEC.

The company has yet to file an S-1 with the Securities & Exchange Commission declaring its intent for an initial public offering, but calmer markets and a marquee name can certainly help smooth out the process from filing to pricing.

While Facebook has been the 800-pound gorilla of private tech companies for some time, a number of its rivals have already come public to mixed receptions.

LinkedIn was among the first out of the chute and is the best performer of the group with shares comfortably in positive territory since their public debut, while more recent deals from Groupon and Zynga remain underwater.

Swisher acknowledges that a volatile market can always throw a thorn into IPO plans, and that Facebook will need to file its S-1 relatively soon if It plans to go public before the end of May given the SEC review process:

The usual caveat on the late May timing (even though I called 143 people on this one): This IPO planning could all change in a New York minute to another month.

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Posted by Usman Khalid on Jan 17 2012. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.