 "Facebook expands IPO size, to raise $15 bn")
San Fransisco: Facebook Inc is increasing the size of its IPO by 85 million shares to about 422 million, a source familiar with the matter told Reuters, raising more than $15 billion in Silicon Valley’s largest market debut.
The increased volume comes just after the world’s No 1 social network hiked its price range to $34 to $38 a share, from $28 to $35 previously.
Facebook had originally intended to sell about 337.4 million shares. At a mid-point of $36, the company would raise $15.2 billion in one of the largest US initial public offerings ever.
Traders will have their first crack at using options to hedge their bets or speculate on Facebook shares in two weeks, when US options exchanges expect to list contracts on the hot new stock.
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Facebook shares will begin trading on the Nasdaq Stock Market this Friday. The world’s No 1 social network plans to raise more than $12 billion in its highly anticipated initial public offering this week.
The International Securities Exchange plans to offer options on Facebook on Tuesday, 29 May, the all-electronic options market said on Tuesday. The options listing date is contingent upon a successful completion of Facebook’s IPO, ISE said in a statement.
Other US options exchanges are expected to follow suit as long as certain thresholds, including trading volumes, are met. 29 May is the first date that options trading could begin, a spokesman for exchange operator CBOE Holdings said.
ISE is owned by derivatives exchange Eurex, which is co-owned by Deutsche Boerse . CBOE operates the Chicago Board Options Exchange, the largest US options market.
Reuters