Investors Turn Focus To Facebook's Potential Record-Breaking IPO

Tom Burroughes

14 May 2012

The traditionally staid world of wealth management will keep an eye on the upcoming initial public offering of social media behemoth Facebook this week, amid reports that the US firm intends to stop taking orders for the IPO by tomorrow, two days ahead of schedule.

Facebook will probably finish taking investor orders for the IPO after US markets close tomorrow, Bloomberg quoted an unidentified source as saying.

As sectors such as wealth management have jumped on board the social media trend – not to mention the world of mobile technology and cloud computing – interest in the Facebook IPO is sure to be intense. Menlo Park, California-based Facebook is offering about 337 million shares at $28 to $35 each. The market valuation is as much as $96 billion.

The Facebook IPO has also indirectly put attention on the US tax system, which operates on a worldwide basis. Recently, the firm's co-founder Eduardo Saverin renounced his US citizenship, a move seen as driven by tax concerns.

Bloomberg reported that Apple’s co-founder Steve Wozniak as saying he will buy shares in the social-networking company when the first shares are sold on May 17, regardless of the valuation.

If the prices mentioned are achieved, Facebook would surpass United Parcel Service as the most valuable company in history to go public in the US. .

To view an associated article about wealth management and social media, click here.