Facebook expects to hit a valuation of as much as $95.9bn when it debuts on Wall Street this month, the social networking company said, as it moved into the final stages of the most hotly anticipated share sale since Google’s initial public offering eight years ago.
The company also put an unusually wide price range on its shares, with a value of only $86bn at the midpoint. That is well below the $100bn widely anticipated in the markets and left some investors and analysts questioning whether Facebook’s IPO will live up to the high hopes aroused in the build-up.
“My first impression is, it sounds low,” said Kevin Landis, chief investment officer of Firsthand Funds, which already owns Facebook stock. He said the company appeared to have deliberately pitched the price range low to avoid the sticker shock investors might otherwise feel, calling the estimate “a conversation-starter” that could rise much higher.