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Facebook Said to Hire Morgan Stanley for IPO

After reading the below article. Would someone be kind enough to enlighten me with what the heck it is that Face Book offers humanity.

Is it a toaster?

Is it a washing machine?

What the heck does face book offer other than a bunch of lonely people posting their everyday MUNDANE activities. And we wonder what is wrong with society.

Facebook Inc., the world’s largest social-networking service, choseMorgan Stanley (MS) to take the lead on its planned initial public offering, four people with knowledge of the matter said.

Morgan Stanley gains the coveted lead-left position on the IPO filing, said the people, who asked not to be identified because the matter is private. That designation usually means a larger share of the fees collected by a securities firm. Facebook will file plans with regulators tomorrow to raise $5 billion, though the amount may rise, two people said. Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM),Barclays Plc (BARC) and Bank of America Corp. (BAC) will help manage the sale, people said.

Getting picked to handle the IPO is a coup for Morgan Stanley, which according to data compiled by Bloomberg last year won the biggest share of business underwriting U.S. initial offers by Internet companies. Taking the lead on Facebook may catapult the New York-based bank to the top of the U.S. IPO league table for the third year running.

“Morgan Stanley was able to leverage its dominance among Internet companies going public,” said Anupam Palit, head of research at GreenCrest Capital Management LLC. “It shows Morgan Stanley’s track record of underwriting Internet IPOs has paid off.”

Jonathan Thaw, a spokesman for Menlo Park, California-based Facebook, declined to comment, as did representatives of Morgan Stanley, Goldman Sachs, JPMorgan, Bank of America and Barclays Capital.

Biggest Tech IPOFacebook had been discussing raising as much as $10 billion, a person with knowledge of the matter said late last year. At that valuation, Facebook’s IPO would be the biggest ever by an Internet or technology company, data compiled by Bloomberg show, trumping the combined U.S. and German debut from Infineon Technologies AG (IFX)totaling about $5.85 billion in 2000.

Silicon Valley relationships may have paid off for Morgan Stanley after it took the lead on last year’s biggest Internet IPOs, from companies such as Zynga Inc. and Groupon Inc. (GRPN)

On underwriting league tables, Morgan Stanley took 20 percent market share for IPOs by Internet companies on U.S. exchanges in 2011, according to data compiled by Bloomberg. New York-based Morgan Stanley also led all U.S. IPOs last year with 13 percent share, selling an estimated $4.6 billion of shares and generating an estimated $262 million in fees, the data show.

Retail AllocationMorgan Stanley usually allocates a portion of initial offerings for clients of its retail brokerage, Morgan Stanley Smith Barney, a joint venture between the firm and Citigroup Inc. Morgan Stanley Chief Executive Officer James Gorman has said that new equity issuances provide investment banking revenue to the brokerage and drive higher trading activity.

That may help the brokerage, the world’s largest, with more than 17,000 advisers and $1.65 trillion in client assets, make strides toward Gorman’s goal of a 20 percent pretax profit margin. The unit had a 10 percent margin in 2011. Morgan Stanley owns 51 percent of the joint venture and has the chance to increase that stake to 65 percent starting in May.

Morgan Stanley also worked on IPOs by Yandex NV, Zynga and LinkedIn Corp. (LNKD), among the biggest Internet debuts in the U.S. last year. It was one of the lead managers on Google Inc. (GOOG)’s IPO in 2004 and led Apple Inc.’s IPO in 1980, Bloomberg data show. Goldman Sachs, which placed fourth in U.S. Internet IPOs in 2011 behind Deutsche Bank AG and Bank of America Corp., helped take Yandex, Zynga and Groupon public, while losing out on LinkedIn, the data show.

Morgan Stanley’s assignment was previously reported by IFR.

To contact the reporters on this story: Douglas MacMillan in San Francisco at[url=mailto:dmacmillan3@bloomberg.net]dmacmillan3@bloomberg.net[/url]; Lee Spears in New York at [url=mailto:lspears3@bloomberg.net]lspears3@bloomberg.net[/url].

To contact the editor responsible for this story: Tom Giles at [url=mailto:tgiles5@bloomberg.net]tgiles5@bloomberg.net[/url]; Jennifer Sondag at [url=mailto:jsondag@bloomberg.net]jsondag@bloomberg.net[/url]


Added: Jan-31-2012 Occurred On: Jan-31-2012
By: Rambo33
In:
World News, Regional News, Other News
Tags: Face Book, IPO WTF
Location: Savoy, Massachusetts, United States (load item map)
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