Facebook is revising hard and fast in the lead-up to Friday when it is expected to ring in the Nasdaq bell and go public. In short, every revision is continuing to gradually push up the value of the company. Today’s S-1 filing has increased Facebook’s share offering to 421,233,615 shares of Class A common stock – 83,818,263 shares more than yesterday’s S-1, which had 337,415,352 shares of Class A common stock. Meanwhile the amount of Class B stock appears to have gone down.
With the additional shares, the company could now potentially raise up to $16 billion when it goes public, according to Reuters. Facebook is holding on the $34-38 price range. It will be trading on the Nasdaq as FB.
The move to increase the size of the offering could be read in two ways: it’s a way of meeting investor demand, which reports have noted continues to be high.
But it could also be a way of inspiring more confidence and interest in the company to stave off some of the more negative reports we’ve had in the last couple of days, specifically over Facebook’s advertising business.
That has included mention of how the shift to mobile usage will affect Facebook’s core advertising business (which shows many ads per page on its main site, but fewer on mobile), but also how some advertisers are pulling away from the network. Yesterday, the big story was that Facebook had lost a contract from General Motors. The GM deal was worth $10 million — not massive in terms of value — but very embarrassing for the social network because of the reason: apparently it was too hard for the car company to quantify the return on the investment.
Could it be that Facebook is already factoring in GM’s departure into its balance sheet? The S-1 today notes a slight decline in “cash, cash equivalents, and marketable securities”, which are now at $10,311 million compared to $10,312 million in yesterday’s report. (Note: This could also be to do with Facebook reducing a share allocation with the shares being sold by others increasing. We’re trying to find out.) Update: it’s almost certainly with accountants fine-tuning pro-forma numbers as the listing day approaches, with the GM deal not reflected in the S-1 numbers today.
Among the other changes: it looks like Facebook’s “greenshoe” provision has also gone up: it’s now at 63,185,042 shares compared to 50,612,302 shares yesterday.
The amount of Class A common stock that FB says will be outstanding after its IPO has also gone up: it’s now at 635,881,796 shares compared to 598,396,119 shares yesterday.
The amount of Class B common stock post IPO, however, is down: 1,502,203,241 shares now compared to 1,539,688,918 yesterday.
Altogether the two classes combined will continue to have the same amount of shares post-IPO: 2,138,085,037 shares.
Also Dan Primack has noted how some of Facebook’s shareholders are now increasing the number of shares that they are selling:
Accel Partners is now selling 49 million shares (versus 38.19 million in yesterdays S-1); DST is selling 45.66 million shares (vs 26.25 million yesterday); Mail.ru is selling 19.6 million shares (versus 11.27 million yesterday).
One he doesn’t note are the “Entities affiliated with” Goldman Sachs, which are more than doubling the shares they’re selling to 28,672,712 million (vs 13,189,447 in yesterday’s filing).