For the second day in a row, Facebook has increased the deal size for its IPO. After increasing the number of shares available from insiders, Facebook is now challenging General Motors for the third largest US IPO ever. At the high end of the $34 to $38 price range, Facebook would raise $16.0 billion, just surpassing General Motors' $15.8 billion deal from 2008. Coincidentally, General Motors announced only yesterday that it would be pulling its paid advertisements from the social networking site. To jump past ENEL SpA's $16.5 billion deal, Facebook would need to price at $40. Barring yet another change in terms, it seems unlikely to challenge Visa's record $17.9 billion deal from 2008.
With today's increase, Facebook now plans to offer 421 million shares (57% insider), which would bring in $15.2 billion at the midpoint. The company originally filed to offer 337 million shares (47% insider) at a price range of $28 to $35. Since all of the added shares are being sold by insiders, Facebook's valuation remains approximately $98 billion. Most expect that number to rise considerably once trading begins on the NASDAQ on Friday.
