Facebook expected to have a high valuation after initial public offering

Facebook expected to have a high valuation after initial public offering

California City : CA : USA | May 04, 2012 at 12:12 PM PDT
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As Facebook declares its initial public offering’s details, the company has come in the limelight and the founder of the company Mark Zuckerberg is expected to become one of richest people in the whole world. The company’s valuation has been determined as among the top companies in the world and the range for the share price for the new shares is estimated between 28 to 35 dollars per share.

The company is going to offer 337.4 million shares for the public, making them 11.8 million dollars in total. Facebook is already immensely popular among internet users and usually has more users on any day compared to other social networking websites. The popularity of the platform has further increased since the introduction of newer applications, making users addicted to the social medium.

After the initial public offering, the company would have to develop a solid strategy to maintain its position in the market and become successful as the public company as well. The founder of the website will become one of the richest people at a very young age, but would have to work very hard to manage the company and perform his role as a good leader.

Paul Saffo, managing director at Discern Analytics based in San Francisco, has commented on the situation Mark Zuckerberg would be facing after the initial public offering. “The whole story about the Silicon Valley is hard-working, entrepreneurial tech geeks getting big payoffs. The challenge he has is: Can Mark grow as quickly as his company has grown? And can Mark grow faster than his company has grown? Because, of course, that’s what a leader must do,” Saffo said in his comments as reported by The Washington Post.

The company would attain the high valuation of 96 billion dollars after the initial public offering - which is going to be a sign of success after the continuous hard work of the Facebook team. The founder has taken quite a long time to reach the initial public offering and therefore the company’s shares are being eagerly awaited by the interested investors.

After the initial public offering, the future growth opportunities for the venture would be an important concern for the investors. As they would be owning a part of the business, their concerns would have to be given proper attention by the management so that they are fully satisfied. The trust from the investors is after all very important for the business to run successfully.

sarah1 is based in California, California, United States of America, and is a Reporter on Allvoices.
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