The well-known social media company Facebook yesterday ( May 3 ) set the share value estimate for the upcoming initial public offering (IPO) at USD 28 to USD 35 per share. This would value the company at between USD 77 – 96 billion, at the low to mid end of predictions.

Commentators expect the IPO begin around May 17, after a roadshow to test investor interest and determine the share price more exactly. The estimate is the first official valuation of Facebook, by Facebook, with previous figures of around a USD 100 billion coming from the legions of experts inspired to share their opinions by the eagerly awaited IPO.

First quarter results for Facebook this year show the number of active daily users well up – 41 percent to over half a billion, revenues also rose, but profits fell due to increased expenses.

Last year, Facebook made a USD 1 billion profit, at USD 3.7 billion in revenues. CEO Mark Zuckerberg, who founded the company in a Harvard dorm room in 2004, owns 28.1 percent. The company now makes the bulk of its revenues from advertising - 83 percent, while some 12 percent come from revenues sharing from gaming company Zynga.

Liam Lever, liam@romania-insider.com