Wednesday, August 15, 2012

Facebook expects the sale day

Facebook expects the sale day
Insiders - early investors and employees of Facebook - from Thursday will bring in a free market sale of their shares in the transaction to which social networks to function after the IPO period restrictions, writes The Financial Times.
The world's largest social network Facebook held an initial public offering of its shares on the Nasdaq National Market on May 18 this year. As a result of offers for free circulation were produced 421.23 million ordinary shares of Facebook, of which 180 million sold by the company, and 241.23 million - Existing shareholders.
Facebook's stock price in the IPO was set at $ 38. However, over the past three months, their prices have dropped by almost half - on the Nasdaq closing price Tuesday of one share of social networks accounted for 20.38 dollars.
Facebook has followed a number of other companies, and introduced the period of restrictions on the sale of its shares to investors and finance its business in the early stages of development, as well as employees who received the securities in the form of remuneration.
All shareholders Facebook, which were established prior to placing the company on the stock exchange, is now prohibited from selling their shares. For different groups of shareholders has a different period of the moratorium. The shortest is set for those who sell securities in the IPO: 90 days from the date of posting (for all but the social network founder Mark Zuckerberg, it is longer).
These 90 days will expire on August 16, reminiscent of "Vedomosti", released under the ban of about 271 million shares, the company said, it is 12.6% of the share capital, which is comparable with its "free float" - now in the free float of around 20 %.
The largest shareholders, which lifted the ban, including Group (2,3%), August 16 will have the right to sell part of their packages. Will sell their shares, and DST Global Group, their representatives did not comment. Close to one of these companies are a source told the publication that "negotiations."
"I would not be surprised if some investors are willing to sell shares in Facebook: many fear that they will continue to become cheaper," - says the analyst "Uralsib" Konstantin Belov. Prerequisites for significant growth not: Investors are no longer convincing increase in the number of accounts in the social network - you need to make it spilled over into revenue growth. It is clear that social networks affect the sale of securities and quotes Group, which owns a significant stake of Facebook, says Belov.

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