Facebook will make an additional 83.8 million shares available in an initial public offering on Friday, according to an eighth amendment to its S-1 filing with the Securities and Exchange Commission.
Most of these shares are being sold by existing stockholders Accel Partners, Digital Sky Technologies, Goldman Sachs, Greylock Partners, Mail.ru Group Limited, Tiger Global Management and venture capitalist James Breyer. These entities and individuals likely decided to sell more shares after Facebook increased its price range for the IPO from between $28 and $35 to between $34 and $38.
Other additional shares will be sold by IPO underwriters, including Morgan Stanley and JP Morgan. According to today’s amendment, Facebook has granted its underwriters the right to purchase more 63 million additional shares of Class A common stock to cover over-allotments. This is sometimes called a “greenshoe” option. Previously, Facebook was offering only about 50 million shares for a greenshoe, but this increased today because the number of over-allotment shares is typically a percentage of the total number of shares being floated.
Facebook itself is still only offering 180 million shares, which will raise about $6.8 billion for the company at the high end of the range. The remaining shares being sold will come from founders, employees and investors. CEO Mark Zuckerberg will exercise stock options and sell 30.2 million shares worth over $1 billion before taxes. Zuckerberg was not among the investors who decided to increase the amount of shares they would sell in the offering.
Facebook’s IPO will likely value the company at over $100 billion. Executives are expected to set the final stock price on Thursday. According to TechCrunch, the company will hold an all-night Hackathon event before Zuckerberg rings the opening Nasdaq bell from the social network’s headquarters in Menlo Park, Calif., on Friday morning.