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Facebook Adds Nearly 84M Shares To IPO

Facebook filed with the Securities and Exchange Commission Wednesday morning to add 83,818,263 shares to its Friday initial public offering, bringing the total offering to 421,233,615 shares of class-A common stock.
CNBC’s Kate Kelly reported late last night that the move will increase the number of shares being offered by the social network by 25 percent, adding that when combined with the greenshoe overallotment option — in which underwriters can sell up to 15 percent more stock than the offering company originally announced –Facebook’s total take could approach the $20 million mark, although most reports are going with lower estimates. CNET pegged Facebook’s maximum take at $18.4 billion.
However, the number of shares being offered by Facebook itself remains unchanged, at 180 million, plus 3 million to cover overallotments. So where are the additional shares coming from?
According to CNET, here is part of the answer:
  • Longtime Facebook investor Digital Sky Technologies will offer nearly 46 million shares, up from 26 million.
  • Venture capitalist Peter Thiel will sell 16.8 million, up from 7.7 million.
  • Accel Partners, another longtime Facebook investor, will make 49 million shares available, up from 38 million.
The final decision on the share price for Friday’s IPO will be made Thursday after the markets close.


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