Facebook Valued at $94B in Private Auction

The social-networking company that’s preparing for an initial public offering, had a valuation of at least $94 billion yesterday in an auction of its shares on the private market.

Shares Post Inc. completed an auction of 100,000 shares of Facebook’s Class B common stock, according to an e-mail obtained. The shares were sold for a clearing price of $40 each, valuing the company at $94 billion based on a fully diluted share count of about 2.35 billion, according to Shares Post.

Facebook filed this week to raise at least $5 billion in the largest Internet IPO on record.

Is Facebook a wise investment?

A report published by the Wall Street Journal Friday has touched off a flurry of speculation that Facebook could file IPO papers with the U.S. Securities and Exchange Commission as early as Wednesday.

In an interview with CTV’s Canada AM, IT and finance expert Dave Valliere says the timing of the sale begs the question: why now?

Valliere, who chairs the Ted Rogers School of Management Entrepreneurship and Strategy at Ryerson University in Toronto, says companies will often decide to go public when they need an injection of cash.

“That’s useful if you have some great projects in mind.

Habib Bank IPO, GDR approved

Habib Bank president Zakir Mahmood said on Monday the government of Pakistan has given green light for the issuance of IPO and GDR of the bank, authorizing the Privatization Commission to set a deadline and work out details.

Addressing a press conference on the launch of new corporate identity of the bank, he said the bank had already applied to different regulatory authorities of foreign countries to allow it to start business.

He said HBL has plans to extend its presence in key international markets, which include the United Kingdom, UAE, South and Central Asia, Africa and the Far East.

OGDCL – POST-GDR AND 2ND IPO

OGDCL was listed on GDR on December 18, 2006 at a price of US$ 1.89/share, which accounts approximately to Rs. 113.40 (the exchange rate being Rs. 60/US$ 1). Moreover, GoP also launched 20 million shares from its holdings in the company in what is a secondary public offering and what is termed a second IPO in mid-January of this year at a price of Rs. 110/share.

What Happens When Beasts Roam the Earthen Markets

Needless to say, a stock market is a very interesting playground; things change quite quickly and decisively. A few days ago we saw a bearish trend in the market and now the trend has changed to bullish. These were the levels and prices where everyone was selling and leaving the market; now, everyone’s back on the wagon again, everyone wants to buy and make money.

Last week the bullish trend continued. The Index crossed 11,000 points once again. There was an overall increase in 464 points in KSE-100 index. Though it was the last week of January trading, buying was strong in that it did not affect the pursuant bullish trend. On Wednesday and Thursday, the Index increased by 150 and 175 points respectively.

IPO of OGDCL oversubscribed

The secondary public offering of Oil and Gas Development Company Ltd (OGDCL) shares has been oversubscribed by 38 per cent, Privatisation Commission statement said on Monday.

According to details, the applications for the secondary offering of OGDCL shares is oversubscribed by 38 per cent as the applications received amounted to Rs3.268 billion while the amount required to be realised through this offering was Rs2.365 billion. The number of applications received are 34,758 comprising 33,715 applications for 500 shares and 1,043 applications for over 500 shares.

The (Passed) Winds of Change – Part 2

Again, here’s my take on the news. I think the three more important ones, that directly pertain, hence affect, the Karachi stock exchange, are:

1. The release that Prime Minister Shaukat Aziz is to postpone the decision to levy Capital Gain Tax for the next year.
2. The Sindh Government’s decision to discontinue stamp duty on electronic transfer of shares. [This proposal was in the last budget (June 2006). The duty was Rs. 0.01 per share.]
3. The opposition and disfavor of the Public Accounts Committee toward the privatization of Pakistan State Oil (PSO).

Only five IPOs at stock market in 2006

Despite the continuation of investor-friendly policies and a decent growth in corporate earnings, the local capital market remained slow in terms of attracting new listings compared with the previous year.

The calendar year 2006 was a depressing year in terms of Initial Public Offerings (IPOs). While the performance of the market is primarily examined by the index change, the growth of capital market can be determined by looking at the fresh issues brought into the market through IPOs.

With 2006 approaching its end, we are presenting an analysis of the stock offerings that took place during 2006.

Pak Steel (PS) IPO under consideration

Various options are now being considered for the privatisation of Pakistan Steel Mills (PS), which includes listing at the stock exchanges of the country, said Minister for Industries and Production Jehangir Khan Tareen on Thursday.

Speaking to reporters during his visit to the mills, he said the government would privatise the entity in phases, which could include initial public offering of 10 per cent shares. “The government will privatise the PS, but it is yet to be decided how it will be done,” he said.

Albarak Pakistan IPO planned

Bahraini Islamic bank Albaraka is planning to float 25 percent of its unit in Pakistan to bring its capital to $100 million, the minimum for a Pakistani bank, an Albaraka official said on Monday.

“We are thinking of having an IPO in Pakistan and turning it (Albaraka Pakistan) around and making it an independent bank,” Albaraka General Manager Salah Zainalabedin told Reuters. “In Pakistan right now they (banking authorities) are looking at a minimum capital of $100 million so we will probably be looking at that size,” he added.