Data Management

11:26 AM
Phil Albinus
Phil Albinus
Commentary
Connect Directly
Twitter
RSS
E-Mail
50%
50%

Facebook IPO Watch: $35 a Share?!

The much-anticipated IPO has a low, low price but you'll be lucky to get a piece of the action. Is that fair to the people who made Facebook into the Social Media Giant it is?

You and your family spend more time on Facebook than at the family dinner table. It knows more about you and your life than maybe even you do. You'd think the web site loaded with your personal facts, photos and connections would make their IPO available to you and me. Think again.

As The Wall Street Journal and other media outlets report that the Facebook IPO - the one that I thought would herald the psychological start of the recovery from this recession - might be worth $28 to $35 per share, it might only be available to heavy hitters.

Are Google and Facebook stealing tomorrow's quant stars?

According to Dealbook, we civilians won't be able to get in on the $100 billion action.

Depending on the size of the offering, Facebook will end up paying more than $100 million in fees to the underwriters. The firms that receive the most in underwriting fees typically get the biggest number of retail shares. In the case of Facebook, that is likely to be Morgan Stanley, which has a large network of brokers. Those shares are highly coveted and typically go to the firm's top-producing brokers - and their best clients.

One Wall Street broker, who declined to be named, citing his firm's policy against speaking to the media, said that financial advisers who specialize in initial public offerings will also be at the top of the list of brokers getting a Facebook allocation.

A side note: isn't it odd that Apple is selling at $569.92 per share - and that's down 2.02 percent?

Does your hedge fund want a piece of the Facebook action? What do you think its price will be one year after it goes public? Tell me at palbinus@techweb.com.

Phil Albinus is the former editor-in-chief of Advanced Trading. He has nearly two decades of journalism experience and has been covering financial technology and regulation for nine years. Before joining Advanced Trading, he served as editor of Waters, a monthly trade journal ... View Full Bio
Comment  | 
Print  | 
More Insights
More Commentary
SEC Examinations: What to Expect When the SEC Is on Its Way
Theodore Eichenlaub highlights trends in SEC expectations and how to approach a risk assessment of your compliance program.
The Value of Predictive Analytics in Financial Services
Risk management and customer data are two key areas where data analytics is being applied in financial services.
Moving the Trader Closer to the Investment Process
The sell side can demonstrate more value by applying analytics to pre- and post-trading, and by educating buy-side clients about broker segmentation, trading behavior and algorithm shortcomings, and more.
Wirehouses May See More Independent BDs as Retention Packages Expire
Retention bonuses are expiring, leaving brokerages vulnerable to attrition. Is access to technology making it easier for brokers to go independent?
SCI: A Whale of a Regulation
The SEC's Reg SCI weights in at a whopping 742 pages. Here is what you need to know about the oversized regulation.
Register for Wall Street & Technology Newsletters
White Papers
Current Issue
Wall Street & Technology - Elite 8, October 2014
The in-depth profiles of this year's Elite 8 honorees focus on leadership, talent recruitment, big data, analytics, mobile, and more.
Video
5 Things to Look For Before Accepting Terms & Conditions
5 Things to Look For Before Accepting Terms & Conditions
Is your corporate data at risk? Before uploading sensitive information to cloud services be sure to review these terms.