Date:02 February 2012
Facebook files for $5bn IPO
Facebook has filed for an initial public offering with the US Securities and Exchange Commission that could value the social networking site between $75bn and $100bn. The company said it would seek to raise $5bn, around half the amount expected by some analysts. But the IPO is still expected to be one of the biggest US stock market debuts of all time.
The world’s largest social networking site, launched by Harvard University students, is just eight years old and now has 845m global users and 443m daily visitors. Facebook turned a profit of $1bn last year. The company disclosed in its filing that founder Mark Zuckerberg owns 28.4% of Facebook and holds 57% of its voting share power.
In a letter to potential shareholders, Mr Zuckerberg said he plans to continue focusing on building products, rather than sales growth. "We don't build services to make money; we make money to build better services," Mr. Zuckerberg said. "These days I think more and more people want to use services from companies that believe in something beyond simply maximizing profits."