The New York Times.
Facebook pulled it off.
As investors raced to buy shares, the sprawling social network raised
$16 billion on Thursday, in an initial public offering that valued
Facebook at $104 billion.
While the I.P.O. shares, 421 million of
them, are being sold at $38 each, the feverish anticipation of their
debut could drive them higher on Friday when the stock starts trading
about 11 a.m. Newly public technology stocks — particularly ones that
have captured investors’ attention like Facebook — often achieven
double-digit gains in a one-day pop.
Investors who buy Facebook
shares are taking a stake in a unique and potentially valuable business.
But they are also exposing themselves to the risks posed by a
relatively young company operating in uncharted territory.
The I.P.O.
signals a rapid evolution for the company. In just eight years, Facebook
has gone from a scrappy college service founded in a Harvard dormitory
to the third-largest public offering in the history of the United States, behind General Motors and Visa.
Investors
now consider Facebook more stalwart than start-up. At $104 billion, the
social network’s market value is higher than those of McDonald’s, Citigroup, Amazon and all but a handful of other American companies.
