Amid the flurry of excitement, some skeptics have reared their heads about the Facebook initial public offering set to take place Friday.
Facebook finished trading on private markets at its highest price yet, $44.10 per share, 10 cents higher than the previous high. The close gives the company an implied valuation of to $103.635 billion to $110.25 billion.
SharesPost says the current auction of Facebook shares is the last one that will take place on a private marketplace.
“We’re still wondering how and why it’s legal to keep selling shares privately after registering for an initial public offering,” we wrote in a post last month about private exchange trading of Facebook stocks. The Securities and Exchange Commission apparently wondered the same thing.
Facebook’s roughly $100 billion value seems like that of a publicly traded company, due to private marketplaces where early investors are cashing out in weekly auctions.
We are still wondering how and why it’s legal to keep selling shares privately after registering for an initial public offer. Three auctions of Facebook shares have occurred since the company registered with the Securities Exchange Commission, and they’re occurring more frequently than ever.
Facebook shares have surged the most ever a private auction, bidding that took place while everyone was expecting the company to submit registration documents.
Facebook’s initial public offering will make some already wealthy folks a lot deeper pocketed. But some have already cashed out, and now we know who.
Facebook may submit paperwork Wednesday to register for an initial public offering that could be the largest of all time and turn the social network into one of the world’s most valuable companies.
A three-day halt in trades of Facebook shares reportedly begins tomorrow. Some see this as the first sign of a forthcoming registration to go public.