Facebook Frenzy Begins

Loic Venance | AFP | Getty Images

My heavens, the frenzy has begun on Facebook. You would think they were giving the stuff away.

"Probably the greatest IPO no-brainer of all time," one trader said to me.

Huh? How is that? They're offering 337.4 million shares between $28-$35.

Voting rights? Fuhgeddaboudit. There are two classes of common stock: A shares and B shares. There's 1.5 billion shares B shares, about 600 million of the A shares. The B shares have ten times the voting power of the A shares.

They're selling the A shares. And only the A shares.

Get it? You don't have any real voting power.

Valuation: who knows?

You think you have a valuation. Really? What happens when the stock is 100 times over-subscribed? What happens when instead of pricing between $28-$35, it prices at $50 and opens at $120?

Ridiculous, you say? Hey, you should hear the hysteria.

You don't care. Of course you don't. You just want in. You want in because...because. Because it's the greatest IPO of the last ten years. Because everyone is talking about it. Because you want to tell your uncle you own it.

And — for that reason alone — I'm happy. I'm happy to see some excitement generated around an IPO.

Just a bit skeptical.

Not to ruin the mood, but the talk tonight around the Tilly IPO is upbeat. Uber-hip teen and young adult retailer Tilly's (ticker: TLYS), seeking to price tonight for trading at the NYSE on Friday. Primarily on the west coast with a few stores on the east coast, the company sells dozens of hot brands to what looks like impossible good looking, perfectly tanned twenty-somethings. 8 million shares at a price talk of $11.50-$13.50, but that may rise. Check out the website: www.tillys.com.


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