A source close to the share listing for Facebook Inc’s public offering has said that it is already oversubscribed. This comes only a couple of days after the company went out on a roadshow across the country to acquire enthusiasm from possible investors. The source claims that investors from institutions across the country are indicating demand for more shares than Facebook has available despite concerns regarding lofty valuation and slowing growth.
Facebook is trying to raise close to $10.6 billion by selling over 337 million shares between $28 to $35 per share. Analysts also claim that Facebook might attempt to raise the price per share if they notice demand is healthy enough to do so. Facebook is expected to begin trading on May 18. The company originally began as a project in the dorm room of Harvard student Mark Zuckerberg.
Facebook has 900 million users and is challenging the online time and advertising dollars of internet giants Yahoo Inc and Google. Analysts go on to say that Facebook needs to figure out how to make money from users who access the site from their smartphones. Facebook makes the majority of its money right now from advertising and began offering advertisements for its mobile version just recently.