Source: Julianne Pepitone / CNN Money
NEW YORK – After four months of paperwork, hype and speculation, the last piece of the Facebook IPO is in place: Facebook said it has priced its IPO at $38 a share.
At that price, Facebook’s IPO will raise $16 billion, making it the largest tech IPO in history. It’s the third largest U.S. IPO ever, trailing only the $19.7 billion raised by Visa (V, Fortune 500) in March 2008 and the $18.1 billion raised by automaker General Motors (GM, Fortune 500) in November 2010, according to rankings by Thomson Reuters.
There are still a few more steps before Facebook’s shares are ready to trade. The company is waiting for the Securities and Exchange Commission to declare its IPO effective — the formal green light Facebook and its underwriters need before they can sell shares to outside buyers.
The $38 IPO price is the rate at which Facebook’s underwriters (including lead banker Morgan Stanley) will sell shares to their clients, which typically include large institutional investors, mutual funds and hedge funds.
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