Facebook hikes IPO range to raise $12.1 billion

(Reuters) – Facebook Inc has increased the price range in Silicon Valley’s biggest-ever initial public offering to raise more than $12 billion, giving the No.1 social network a valuation potentially exceeding $100 billion.

The company founded in a Harvard dorm room by Mark Zuckerberg raised the price target range to between $34 and $38 per share in response to strong demand, from $28 to $35, the company said in a filing with the U.S. Securities and Exchange Commission on Tuesday.

That would value Facebook at roughly $93 billion to $104 billion, rivaling the market capitalization of Internet powerhouses like Amazon.com Inc and exceeding that of Hewlett-Packard Co and Dell Inc combined.

At the mid-point of $36, Facebook would raise $12.1 billion, eclipsing Google Inc’s debut in 2004.

Wall Street had expected the company to increase the price range, with investors keen to get a slice of a strong consumer brand. The IPO roadshow began last week and has drawn crowds of investors from coast to coast.

Facebook plans to close the books on its IPO later on Tuesday, two days ahead of schedule, and in a signal that the landmark initial share sale is drumming up strong demand, a source familiar with the deal told Reuters on Monday.

The social network is scheduled to price its shares on Thursday and begin trading on Friday.

The IPO is already "well oversubscribed," which is why the company is closing its books earlier than anticipated, the source said.

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Posted by Awais Khan on May 15 2012. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry