Facebook Has More Demand Than Shares To Offer In IPO

Facebook is set to make its IPO and some out there claim demand will be weak. However, some sources are claiming that Facebook is having no problem at all rounding up investors and that there may be more demand than shares available. Sources are claiming that IPO is "already oversubscribed."

That's good news for Facebook that there's more demand than stock shares available, but the company recently warned that users are moving in droves away from the web to mobile phones only. That move could hurt profitability in the long run. Facebook previously announced that it intended to raise as much as $13.6 billion in its IPO.

If Facebook raises $13.6 billion, that would value the company about $80 billion. Right now, the intention is to price shares at between $28 and $35 per share with trading to start on May 17 or 18th. Some analysts think the stock to go has up to $46 per share over the next year.

[via CNET]