Facebook announced Wednesday that 25% more shares of the company will
be sold in its planned initial public offering later this week.
The additional shares, disclosed in a filing with the Securities and Exchange Commission, could fetch an extra $3 billion, bringing the total raised through the initial share sale to as much as $16 billion.
The offering will now sell 421.2 million shares, up from 337.4 million shares that it had previously announced plans to sell.
Founder Mark Zuckerberg is not selling any additional shares himself, sticking with his previous plan to sell 30 million shares, or just less than 6% of his Facebook holdings.
Zuckerberg has said he is selling shares to cover his expected tax bill from the IPO that could top $1 billion. After the offering, he will hold 503.6 million shares, or about 31% of the company. That stake would be worth $19.1 billion if shares can maintain a $38 price.
But Zuckerberg also holds the voting rights for 584.9 million other shares, shares mostly held by other executives and early investors in the company. There will be an 34% increase of number of those shares being sold, up to 95.8 million from 71.1 million shares previously being sold.
The additional shares, disclosed in a filing with the Securities and Exchange Commission, could fetch an extra $3 billion, bringing the total raised through the initial share sale to as much as $16 billion.
The offering will now sell 421.2 million shares, up from 337.4 million shares that it had previously announced plans to sell.
Founder Mark Zuckerberg is not selling any additional shares himself, sticking with his previous plan to sell 30 million shares, or just less than 6% of his Facebook holdings.
Zuckerberg has said he is selling shares to cover his expected tax bill from the IPO that could top $1 billion. After the offering, he will hold 503.6 million shares, or about 31% of the company. That stake would be worth $19.1 billion if shares can maintain a $38 price.
But Zuckerberg also holds the voting rights for 584.9 million other shares, shares mostly held by other executives and early investors in the company. There will be an 34% increase of number of those shares being sold, up to 95.8 million from 71.1 million shares previously being sold.
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