Facebook’s price range for its initial public offering has been finalized, according to a person familiar with the matter, and will not be re-filed with the Securities and Exchange Commission before this afternoon’s pricing call.
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While the company could still price above the expected range, SEC rules bar companies from pricing too far from what’s been disclosed to the public, meaning Facebook cannot price higher than the low $40s, according to this person.
Some investors have been queried by underwriters specifically about a potential price of $39, according to a person familiar with the deal — a potential signal that bankers may be preparing to close the deal above the current range of $34 to $38.
Pricing discussions remain ongoing, and a final determination won’t be made until after the bell today, this person cautioned.
The social networking giant has seen strong demand for shares, and has re-filed twice over the past 48 hours to increase both the size and potential price of the offering. Currently, the company could raise as much as $18.4 billion (including an overallotment), in a deal that would rank as the second largest IPO in U.S. history.
Facebook is set to begin trading tomorrow on the Nasdaq under the ticker “FB”.
-Written by Kayla Tausche, Kate Kelly, and Jesse Bergman
