Facebook raises over USD 16 bln through IPO, sets company value at USD 100 bln

Facebook shares will float on the Nasdaq today ( May 18 ) after one of the most eagerly awaited IPOs ever. The USD 38 share price in the IPO values the company at over USD 100 billion, and high demand induced Facebook to increase the number of shares available in the IPO.

Over 240 million shares will now be available, up from the 157 million originally offered. The sale should raise up to USD 16 billion dollars, but control of the company will remain in founder Mark Zuckerberg's hands (in picture, Mark Zuckerberg) . Although investors are enthusiastic about getting in on what will be one of the biggest IPOs in US history, questions over the value of the company, and more specifically its capacity to generate revenue, are being asked. The USD 100 billion plus price is 100 times the company's earnings to date and advertising revenue has slowed recently as accessing the site via smartphones does not allow space for advertising. General Motors has also just announced it is stopping adverts with Facebook. Founded eight years ago in a Harvard University dorm, Facebook has become the world's number one social network with over 900 million users worldwide. Liam Lever, liam@romania-insider.com