Industry insiders have claimed that if the former approach is adopted, Deutsche Bank and Morgan Stanley may become the underwriters. (Li An) Total shares: > Related reports: Facebook launches a new application where people who have passed away can leave messages. Facebook might adopt a more traditional IPO approach. Google and Facebook face legal warnings in India or may limit website access. Zuckerberg's endurance is tested as Facebook severs ties with phone manufacturers. Weibo recommendation | Sina Tech official Weibo.
Sina Tech news, Beijing time, January 16th evening edition, according to domestic media citing informed sources, Facebook could quietly go public in the third week of May this year through an Initial Public Offering (IPO).
This aligns with the growth in Facebook's user numbers and revenue. Facebook currently has about 800 million users and is likely to reach 1 billion this year. Last year’s revenue was estimated at $4 billion, with hopes for a one-third increase this year.
Regardless, Facebook's IPO is expected to be one of the largest internet company IPOs to date. Previous reports indicated that Facebook's financing scale could reach $10 billion, with a valuation of $100 billion.
Previously, it was suggested that Facebook might emulate Google and conduct its IPO through an electronic auction model. However, there are also rumors that Facebook will opt for a more traditional IPO method, which involves investment banks acting as intermediaries.
This means Facebook must file its IPO application documents within the next few months because the U.S. Securities and Exchange Commission (SEC) typically requires three to four months for review. Moreover, this is assuming relatively smooth conditions. Under current market conditions, regulatory bodies often require companies to submit additional documents. For instance, Groupon filed its IPO application documents in June last year and only successfully listed in November, five months later.
Although Facebook continues to emphasize that the company focuses more on products than revenue, such positive data is indispensable to attract investors.
In 2004, when Google went public, it bypassed Wall Street investment banks and opted for an electronic auction model. As for what approach Facebook will take, industry opinions vary.
Facebook co-founder and CEO Mark Zuckerberg said in an interview last week, "For years, people have been asking why we don't generate more revenue. I say 'I'm trying to build something long-term.' Clearly, this is the right strategy."