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Does This Mean a Facebook IPO is Coming Soon?

Mark Zuckerberg
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Mark Zuckerberg

T. Rowe Price disclosed Friday that nineteen of its mutal funds hold shares of Facebook worth $190.5 million. While it is not unique for a mutual fund to hold shares of a private company, this could tell us something about Facebook's plans for an IPO.

According to Russel Kinnel, Director of Research at Morningstar, mutual funds are more likely to invest in an established company with a short term horizon of going public than sit on a long-term venture capital type investment. T. Rowe Price likely believes that Facebook is headed for an IPO sooner rather than later.

It's also interesting for the average "Joanne" that wants to get in on what could be a hot IPO. At about 0.35 percent of the assets in the funds named below, it's not a large position, but it's a position.

The big question will be valuation — how will these shares be valued or, revalued in T. Rowe's quarterly reports? History suggests they could be carried at purchase price says Kinnel. Which means we could find out how much T. Rowe paid for the shares once the company files its second quarter report with the Securities and Exchange Commission.

Here are the 19 T. Rowe Price funds:

Sciences & Technology

New America Growth

Media & Telecommunications

Global Technology

Growth Stock Fund

TRP Institutional Large-Cap Growth Fund

New America Growth Portfolio

Tax-Efficient Equity Fund

Growth & Income Fund

Balanced Fund

Blue Chip Growth Fund

Blue Chip Growth Portfolio

Institutional Large-Cap Core Growth Fund

Personal Strategy Balanced Fund

Personal Strategy Growth Fund

Personal Strategy Income Fund

Personal Strategy Balanced Portfolio

Global Stock Fund

Institutional Global Equity Fund

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