Facebook is now rumored to be filing its IPO paperwork as soon as next week. The ‘rumor’ is coming out of a report from the Wall Street Journal that Morgan Stanley (NYSE: MS) and/or Goldman Sachs Group Inc. (NYSE: GS) might get the lead role in the underwriting and that the value is being implied at some $75 billion to as much as $100 billion.
Our take is that Mark Zuckerberg has been holding out to achieve a $100 billion market valuation for the IPO. Even if Facebook does not deliver on its IPO paperwork next week, the IPO is coming soon. The company is going to have to disclose its financials sooner or later due to its large base of shareholders.
GSV Capital Corporation (NASDAQ: GSVC) already owns shares of Facebook and its share have popped by 3% to $15.60 on this news. As a reminder, Microsoft Corporation (NASDAQ: MSFT) invested in this and now should have exponential implied valuation gains on what sounded silly at the time.
Don’t forget about iShares KLD 400 Social Index Fund (NYSE: DSI). It will end up being a holder as well and this should increase the trading volume of that ETF whether it is up or down in share prices.
Facebook is ONE OF OUR TOP 17 IPOs FOR 2012
Until an SEC filing hits the tape, we are treating this as a rumor. One of many rumors. Supposedly the Facebook IPO will create over 1,000 new millionaires.
JON C. OGG
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