Facebook ups IPO price as offering nears

By The Associated Press

NEW YORK – Already expected to be the largest-ever initial public offering for an Internet company, Facebook is making its IPO even bigger.
The world’s largest online social network on Tuesday increased the planned price range for its stock to $34 to $38 per share in a filing with the Securities and Exchange Commission. That’s up from its previous range of $28 to $35. At the upper limit of $38, the sale would raise about $12.8 billion.
The move, which values Facebook as high as $104 billion, comes amid growing investor excitement about the offering. Analysts are comparing the frenzy surrounding Facebook’s IPO to Google Inc.’s in 2004, though in sheer size the latter pales in comparison.
At the same time, half of Americans think the expected value for Facebook Inc. is too high, according to a new Associated Press-CNBC poll.
Wall Street doesn’t share that sentiment.
“Demand is obscenely high,” said Scott Sweet the owner of advisory firm IPOBoutique about the offering. That said, he notes Facebook still has to be careful not to increase the price too much, so the stock still does well when it begins trading on the Nasdaq Stock Market, as expected, on Friday.