Facebook raises IPO price range to $34-38

Social networking site Facebook has raised the price range for its initial public offering (IPO) to USD 34-38 a piece, which is expected to garner $12.8 billion at the top end of the band.

Facebook said in a regulatory filing that it has raised the price range for its IPO to $34 to $38 a share, from $28 to $35 a piece earlier.

The move signals a strong demand from investors.

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Facebook, which will sell 337.41 million shares, is expected to raise about $12.8 billion at the top range of the stock price through the IPO.

With the new price range, Facebook would be valued at $93 billion to $104 billion.

It is expected to go public on May 18 and the stock will be listed on Nasdaq under the symbol 'FB'.

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It's much anticipated IPO is expected to shadow that of other tech giants like Google which had raised $1.9 billion and valued the company at about $23 billion when it went public in 2004.

Facebook's 27-year-old CEO Mark Zuckerberg is planning to sell 30.2 million shares.

He plans to use the proceeds to cover taxes. Zuckerberg would retain voting control of 58.8 per cent of the company after the IPO.

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Other stockholders who would be offering shares include the social network's early investors such as James Breyer of the venture capital firm Accel Partners, who's offering 38.2 million shares.

Goldman Sachs is unloading 20 per cent of its stake, or 13.2 million shares.

With 901 million users as of March 31, 2012, Facebook is the most popular social networking site in the world and a magnet for advertisers.