The dark clouds are hanging over Europe, and there are rumors that Greece may Exit Euro. Yesterday Fitch the rating agency dented and downgrades Spain and Italy each by two notches, Belgium by one. Ireland affirmed at BBB+. Luck of the Irish! it was like a bomb but it was already discounted by the market and market not surprised by Fitch downgrades Euro remained higher against Dollar even after downgrades.
But Fitch was not a news maker, it was non other than Facebook raised the curtains which is ready all set for IPO filing, here is the big estimate whether market will discount this or not.They say $100B now… it will bump up to $115B by time of IPO… then $130B on first day out….
I have been writing over it when Goldman Sachs did the deal with early in 2011 Face book: All set for the
grand IPO Nov 2011 . Then many IT firms launched there IPO’s in the early 2011, I really don’t remember except Linked in all where more of a failure, as I did a post and was just thinking of 1999- 2000 IT bubble Face Book !! Will history repeat itself ??. In fact Goldman realised the potential value of FB and more so one of the reason for taking the stake they will have more chances to be a lead runner when the IPO will be filed for Facebook, rumors where there in the month of November 2011 Face book will be public via Goldman Sachs.
Its seems it’s not so good news for Goldman as the printed sources says Morgan Stanley (MS.N) is a strong front-runner to be the lead underwriter on what would be one of the largest initial public offerings in U.S. history. Goldman Sachs (GS.N) is expected to play a significant role in the deal too.
Morgan Stanley could be the front end leader as it has proved its position as the top Internet stock underwriter by leading the IPOs of LinkedIn Corp., Groupon Inc., and Zynga Inc.
The valuations still remains the Key in this gloomy scenario.