22°C / 7°C
  • Tue
  • 22°C
  • 7°C
  • Wed
  • 21°C
  • 4°C
  • Thu
  • 23°C
  • 4°C
  • Fri
  • 24°C
  • 8°C
  • Sat
  • 22°C
  • 10°C
  • Sun
  • 21°C
  • 10°C
  • Tue
  • 20°C
  • 13°C
  • Wed
  • 23°C
  • 11°C
  • Thu
  • 23°C
  • 13°C
  • Fri
  • 22°C
  • 15°C
  • Sat
  • 22°C
  • 14°C
  • Sun
  • 24°C
  • 14°C
  • Tue
  • 23°C
  • 16°C
  • Wed
  • 23°C
  • 17°C
  • Thu
  • 23°C
  • 16°C
  • Fri
  • 24°C
  • 15°C
  • Sat
  • 20°C
  • 17°C
  • Sun
  • 19°C
  • 17°C
  • Tue
  • 17°C
  • 11°C
  • Wed
  • 18°C
  • 10°C
  • Thu
  • 21°C
  • 10°C
  • Fri
  • 16°C
  • 13°C
  • Sat
  • 17°C
  • 13°C
  • Sun
  • 20°C
  • 13°C
  • Tue
  • 23°C
  • 8°C
  • Wed
  • 20°C
  • 7°C
  • Thu
  • 20°C
  • 6°C
  • Fri
  • 22°C
  • 8°C
  • Sat
  • 21°C
  • 8°C
  • Sun
  • 17°C
  • 8°C
  • Tue
  • 24°C
  • 10°C
  • Wed
  • 20°C
  • 11°C
  • Thu
  • 21°C
  • 11°C
  • Fri
  • 26°C
  • 9°C
  • Sat
  • 21°C
  • 11°C
  • Sun
  • 19°C
  • 13°C
  • Tue
  • 21°C
  • 9°C
  • Wed
  • 24°C
  • 10°C
  • Thu
  • 27°C
  • 12°C
  • Fri
  • 20°C
  • 14°C
  • Sat
  • 20°C
  • 14°C
  • Sun
  • 26°C
  • 14°C
  • Tue
  • 18°C
  • 13°C
  • Wed
  • 18°C
  • 12°C
  • Thu
  • 17°C
  • 10°C
  • Fri
  • 18°C
  • 15°C
  • Sat
  • 18°C
  • 15°C
  • Sun
  • 19°C
  • 15°C
  • Tue
  • 24°C
  • 11°C
  • Wed
  • 23°C
  • 11°C
  • Thu
  • 22°C
  • 9°C
  • Fri
  • 24°C
  • 12°C
  • Sat
  • 23°C
  • 10°C
  • Sun
  • 19°C
  • 10°C
  • Tue
  • 26°C
  • 10°C
  • Wed
  • 24°C
  • 13°C
  • Thu
  • 24°C
  • 10°C
  • Fri
  • 25°C
  • 10°C
  • Sat
  • 25°C
  • 10°C
  • Sun
  • 21°C
  • 13°C
  • Tue
  • 19°C
  • 12°C
  • Wed
  • 21°C
  • 12°C
  • Thu
  • 23°C
  • 15°C
  • Fri
  • 19°C
  • 14°C
  • Sat
  • 19°C
  • 13°C
  • Sun
  • 23°C
  • 14°C
  • Tue
  • 24°C
  • 6°C
  • Wed
  • 22°C
  • 7°C
  • Thu
  • 23°C
  • 7°C
  • Fri
  • 24°C
  • 8°C
  • Sat
  • 23°C
  • 8°C
  • Sun
  • 19°C
  • 11°C

Facebook's IPO already oversubscribed source

A source says Facebook's public offerings are oversubscribed

A screen shot of a Facebook page. Picture: AFP
Facebook Inc,Mark Zuckerberg
World

San Francisco – Facebook Inc's record initial public offering is already oversubscribed, a source familiar with the share listing said, days after the world's largest social network embarked on a cross-country roadshow to drum up investor enthusiasm.

Despite concerns about slowing growth, a lofty valuation and signs the company is having trouble ramping up revenue from mobile advertising, institutional investors have so far indicated demand for more shares than Facebook has available, the source told Reuters.

Analysts say the company, which is seeking to raise about $10.6 billion by selling more than 337 million shares at $28 to $35 apiece, may raise that price range if demand turns out to be healthy enough.

One large institutional investor had put in a major order for shares on Wednesday and was calling around syndicate desks trying to acquire more, a second source familiar with the IPO's progress told Reuters, declining to be identified because the details are not public.

Facebook declined to comment.

The company that began as Mark Zuckerberg's Harvard dorm room project is expected to begin trading on May 18 after an IPO that dwarfs the coming-out parties of other tech powerhouses.

With 900 million users, it is challenging established Web businesses such as Google and Yahoo Inc for consumers' online time and advertising dollars.

But longer term, analysts say Facebook needs to develop a way to earn money from the increasing number of users who access the social network on mobile devices such as smartphones.

Facebook, which makes most of its money from advertising, began offering limited ads on the mobile version of its service only recently.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.