Facebook Inc (NASDAQ:FB) Offers 70 million Class A Stock In A Secondary Public Offering
Facebook Inc (NASDAQ:FB) the social media networking giant which has managed to grow into a tech major with a market capitalization of a huge $135 billion will today start a public offer of 70 million shares of Class A Common Stock. Of the shares on offer the majority shares are being put on sale by the company co-founder and Chief Executive Mark Zuckerberg who has put on the selling table close to 41.35 million shares which were vested with him when the company went public last year. The company is also disposing off close to 27 million shares of Class A stock at the same time.
$4 Billion To Be Used As Working Capital
From the proceeds which are expected to be realized, Facebook Inc (NASDAQ:FB) has indicated that it would use it as working capital. It is expected that Facebook Inc (NASDAQ:FB) might be able to raise close to $ 4 billion from this exercise.
The stock holders who are co selling their Class A stock are not obligated to share their profits with the firm. People in the know have been speculating that Mark will not have much of the funds left to gloat over since he will be hoping to use the funds to clear his tax liability which arose from his sale of 60 million shares of Class B common stock. Consortiums of banks which include the likes of “J.P. Morgan, BofA Merrill Lynch, Morgan Stanley and Barclays” have been identified as the joint book runners for this offering. As part of the same statuary filings with SEC, Facebook Inc (NASDAQ:FB) has disclosed that the company CEO has decided to gift a total of 18 million class B shares to Silicon Valley Community Foundation as a charitable act.
In a related development, Standard & Poor’s has announced that it will have tracking the stock of Facebook Inc (NASDAQ:FB) on the S&P 500 index going forward.