Facebook Increases IPO Price Range To $34 To $38 Per Share, Adds More Than 50M Shares

By David Cohen 

Facebook filed the seventh and what will likely be the final amendment to its S-1 initial public offering filing with the Securities and Exchange Commission late last night, increasing the price range of its shares and making more of them available.

Confirming reports by CNBC late last week and by AllThingsD last night, Facebook upped the price range of its shares from the initial range of between $28 and $35 to between $34 and $38, which AllThingsD had pegged exactly.

Facebook also announced that underwriters now have the right to purchase an additional 50,612,302 shares of class-A common stock to cover overallotments, in what is known as a greenshoe. As described by TechCrunch, a greenshoe is an overallotment option allowed by the SEC, in which underwriters can sell up to 15 percent more stock than the offering company originally announced, with the option of buying back the stock at the offering price should its actual price fall below that number.

With those changes, Facebook can now raise a total of $14.7 billion via the IPO if shares trade at the high range, and if all of the 337.4 million shares the company made available are sold, along with the 50 million-plus shares added via the greenshoe, according to CNET.

The company’s total value has a chance to shoot back over the $100 billion mark, as well, with CNBC reporting that after adjusting for last night’s revisions, Facebook’s value will fall between $92 billion and $103 billion, up from previous estimates of $77 billion to $96 billion.

Reports yesterday that Facebook will stop accepting orders for shares at the close of business today remained unconfirmed, but the answer should surface in a few hours.

As for another hot rumor last week, that the social network’s $1 billion acquisition of Instagram might delay the IPO, that certainly doesn’t seem to be the case.

Readers: There’s still plenty of time between now and the start of trading Friday morning. What else can happen this week?

Image courtesy of Shutterstock.