The social media giant announced today that it will begin offering its own IPO in its US subsidiary, The Next Google.
The company has long been known for offering its investors some of the best and most compelling deals around, but it seems like a strange choice to offer a single offering that’s only available to the public.
Facebook CEO Mark Zuckerberg is known for being a big fan of getting in on the action, and in order to get a chance to get in on this one, it seems appropriate that Facebook will be launching its own stock offering.
Facebook has been under pressure to release an IPO before the end of 2017, with the company struggling to close $6 billion in deals in the first six months of the year.
That hasn’t been enough for investors to give up hope, and today’s announcement makes it official that Facebook is finally taking the next step and giving investors a chance at buying into its stock.
The announcement also offers a new way for people to get into the company through the company’s public stock offering, and it seems as though this could prove to be a good way to get people involved in the company in the future.
If you’re not familiar with Facebook, its stock is currently trading for $68.98, a market cap of over $3.3 billion.
If it does open up its IPO for anyone, the price should be a lot higher.
Facebook will sell about 1.7 million shares, but if it manages to sell more than half of the shares, it’ll net $1.4 billion.
It’ll take some time for the stock to sell out, and the company will likely hold onto all of the money that was raised through its public offering, but the fact that it’s giving away the money now means that it’ll likely be able to hold on to the money and make some money off of the public offering as well.
Zuckerberg has been vocal about wanting to get his stock price up and he’s been saying that he wants to get more people into the platform and that Facebook’s share price should go up, so it makes sense that Facebook would go after its IPO as soon as possible.
Investors will be able buy in on Facebook’s stock offering starting tomorrow at 10:01 AM PT and then it’ll open at 11:59 PM PT on March 3, 2020.
Facebook is offering a whopping $3,890 in cash for each share, but this isn’t the only way that investors will be getting into the stock offering and it will probably be worth more than that if it works out well for them.
The Next Facebook will offer shares in the form of convertible notes, which will allow investors to convert their shares into shares of Facebook at a discount.
Investors who buy into Facebook’s offering will get to vote on whether to convert the convertible notes to shares of the company, and if they don’t like the conversion option they can always sell their shares at a later date and have them paid in cash.
Facebook says that it plans to issue about 5 million convertible notes in its offering, which is more than double the amount that the company issued in the public offerings that it did in 2016 and 2017.
It also notes that it has no intention of holding back any of its convertible notes for anyone.