New York/ Francisco: Facebook Inc. increased the price range on its initial public offering an average of 14% to raise more than $12 billion, giving the world’s No. 1 social network a valuation potentially exceeding $100 billion.
The company, which began in a Harvard dorm room by Mark Zuckerberg, raised the target range to between $34 and $38 per share in response to strong demand, from $28 to $35, according to a filing with the US Securities and Exchange Commission on Tuesday. That would value Facebook at roughly $93-104 billion, rivaling the market capitalization of Internet powerhouses such as Amazon.com Inc., and exceeding that of Hewlett-Packard Co. and Dell Inc. combined.
The price rise indicates intense market demand, which means Facebook’s shares are likely to see a big pop on their first day of trading on Nasdaq on Friday, analysts said.
Tanya Agrawal contributed to this story.