Facebook shares will float on the US stock market on Friday 18 May, with a “roadshow” for the company’s enthusiastically-awaited initial public offering to begin next Monday including its founder Mark Zuckerberg. The eight-year-old social network, with 900 million users worldwide, is expected to have a valuation of around $100bn (£61.6bn) and is the most eagerly awaited flotation since Google’s in 2004. It is expected to raise $5bn through its share offering.
IPO roadshows, in which company management presents its strategy to prospective investors, typically last one to two weeks. If the roadshow goes particularly well, shares sometimes start trading a few days earlier.They also give investment banks which will buy the majority of shares ahead of the flotation the chance to evaluate the management and its forecasts, and can drive the eventual flotation price up or down.Facebook still commands keen investor interest, although disappointing first-quarter results raised questions about whether it can sustain breakneck growth for the longer term.
