Building excitement for Facebook IPO

FaceBook’s IPO has been on the cards for some time now, so finally nice to see that Mark Zuckerberg has kicked off his road show in the hope of building up some excitement. The event started yesterday and was closed to the public, but there were long lines of potential institutional investor – we just wonder if they were put off by being addressed by a man who stood before them in a hoodie and jeans?

The IPO is said to begin in just a few weeks time, and it’s then that we could be shocked with the value of the company, which is said to be around $96 billion. According to a source each of the 337.4 million shares will be worth a value of $28 to $35 each.

One of the reasons for the price variation is because excitement could increase the further into the road show we get; Facebook needs this to happen if they have any hope of raising $11.8 billion. Trading is expected to begin on May 18th, with the IPO price due to be set just one day before, so Zuckerberg better work his magic.

You would have thought a company trying to win over investors would be on time with their presentation, so you can understand why we were shocked to learn that it started about an hour late. However, there’s no denying that once they got started the efficiently produced video would have eased some would be investors anger – but some would still have felt a little frustrated.

There had been rumors that Warren Buffett would be investing in Facebook, seeing as though Mark had been asking him for advice, but it looks as though he will not be investing. One of the main reasons is due to Buffett and his investing partner not wanting to put money into things that they do not understand. It’s also reported here that they do not invest in things just because they are drawing some big headlines at the moment.

Do you think that Facebook is a worthwhile investment?