Facebook myth

The High-profile IPO has not only sparked a scramble for investment banks, but has also plunged global VCs into a busy http://www.aliyun.com/zixun/aggregation/1560.html "> Facebook's IPO could be a lucrative book return for the venture industry as never before. At the same time, if its valuation can reach expectations, it will undoubtedly bring a premium space for the relevant concept stocks.

The High-profile IPO is not only a scramble for investment banks but also a rush for global VCs, and the potential for Facebook's IPO to be a lucrative book return will be unprecedented in the VC industry. At the same time, if its valuation can reach expectations, it will undoubtedly bring a premium space for the relevant concept stocks.

Investment banks and exchanges vie for America's biggest IPO

Facebook's IPO, one of the largest public offerings in U.S. history, has been fiercely contested by Wall Street's big banks to become the main underwriter of the IPO. Morgan Stanley and Goldman Sachs are among the leading competitors, with only 1% per cent of the underwriting commission offered by two investment banks, at a record low.

For smaller IPOs, the Commission is usually 7%, whereas for larger IPOs the commission ratio is usually 2% or 3%.1% is far below the usual standard.

But even if it is only 1%, investment banks still earn, because it will be easy to sell Facebook shares to investors, and with Facebook financing up to $10 billion, the 1% commission will generate about $100 million trillion in revenue and consolidate the position of the relevant investment banks in the IPO market.

According to the Wall Street Journal, Facebook is likely to pick Morgan Stanley as the lead sponsor and arrange listings, while another big bank will play an important role. However, statements by Facebook, Morgan Stanley and Goldman Sachs declined to comment on the reports.

It also includes two major securities trading platforms ——— Nasdaq and NYSE. Over the past few months, the two trading platforms have been throwing olive branches at Facebook. According to a recent report by PRIVC O, a research institute that tracks unlisted companies in New York, Facebook is likely to opt for NYSE listings rather than Nasdaq, which is dominated by technology companies. However, Facebook has not yet identified the listed exchange, but the stock code is expected to be "FB".

Facebook founder Zuckerberg is said to have been reluctant to put Facebook on the list because he wants staff to focus on the best service, but it is likely to focus on quarterly earnings and share prices after the listing. However, Facebook currently has a ceiling of 500 shareholders, and is also reporting financial data on the list.

Facebook's operating profit in 2011 was about $1.5 billion trillion, with revenues of about 3, 800 million dollars, according to BusinessInsider, the American Technology blog website. According to Facebook's revenue last year, the 100 billion-dollar valuation is 25 times times that of P/E, and the site is aggressively expanding its mobile advertising market, with revenues expected to close to $7 billion trillion this year.

(Responsible editor: Lu Guang)