By Ryan Collett
Everyday investors may have a chance at getting their hands on shares of Facebook stock when the company makes its market debut later this month. Plans announced last week by the social-networking giant show a portion of stock set aside for small investors.
Facebook will sell 337.4 million shares of stock at a value of $28 to $35 a share, it announced on Thursday. The public offering will raise $10.6 billion for the company.
Corporate investment firm, Morgan Stanley, will preside over the public offering. Facebook executives will meet with big-name investors leading up to its official opening on Nasdaq on May 17th.
While a large portion of the stock will be snatched up by big-name investors, insiders are estimating that Facebook is setting aside 20 to 25 percent of the shares for retail investors. Retail investors, like TD Ameritrade and E*Trade, cater to small investors.
More than 500 million people log onto Facebook on a daily basis. Since the company prides itself as a consumer-driven organization, it is seeing that a portion of its public offering is actually accessible by the public.
While Facebook is seeking to broaden its spread of shares, company founder and CEO Mark Zuckerberg will still keep control of more than half of the company.
Zuckerberg plans on selling 30.2 million shares – which will earn him more than $1 billion. Facebook explained that a majority of profits from Zuckerberg’s personal sale will be used to pay off a large business tax bill. However, Zuckerberg’s remaining shares could become worth nearly $17 billion.