Facebook Begins Courting Investors
Facebook is attempting to raise over $10 billion dollars, an amount that would give it a market value equal to Amazon, according to Reuters.
The size of the IPO reflects the company's growth and bullish expectations about its money-making potential as a hub for everything from advertising to commerce. Many investors say they expect Facebook to raise its offer price-range as the roadshow progresses from New York to major cities such as Chicago, Boston and San Francisco.
Investors formed a line outside the Sheraton Hotel about an hour before the roadshow started on Monday morning, as a nearby media throng awaited the arrival of Facebook executives and elicited inquiries from curious passers-by.
Experts are expecting that Facebook will improve in value throughout 2013 and would make a good investment.
Susquehanna Financial Group analyst Herman Leung said in a note to investors on Monday that he expected Facebook's revenue to grow 40 percent this year and 33 percent in 2013.
He said the $28 to $35 range for Facebook shares was an "attractive" valuation that provided a "compelling entry point" for investors.