Facebook picks Nasdaq to list its shares: Report

April 06, 2012 11:38 am | Updated November 17, 2021 01:27 am IST - New York

A file photo of the Facebook headquarters in Palo Alto, California. Facebook has decided to list its stock on the Nasdaq, according to the "New York Times".

A file photo of the Facebook headquarters in Palo Alto, California. Facebook has decided to list its stock on the Nasdaq, according to the "New York Times".

Popular social networking site Facebook, which will soon launch its initial public offering, has zeroed in on the Nasdaq Stock Exchange to list its shares, a media report said.

Billionaire Mark Zuckerberg-led Facebook has chosen Nasdaq over the New York Stock Exchange for its listing, the New York Times reported.

The social network will list its shares under the ticker symbol ‘FB’ on Nasdaq, the Times quoted people with knowledge of the matter as saying.

The report said getting a company like Facebook to list on it is a “significant coup” for Nasdaq, which has been “embroiled in a battle with the New York Stock Exchange for the darlings of Silicon Valley”.

Companies like LinkedIn and Pandora Media chose NYSE for their listings even as technology giants like Apple and Google have preferred Nasdaq.

“It’s a high-profile win for their listings business,” analyst Michael Adams said in the report.

“In terms of earnings, the impact won’t be dramatic, but it’s something to be proud of.”

Facebook’s IPO, expected next month, has generated unprecedented interest since it is expected to be the largest offering since Google went public in 2004.

Its 800 million users and $3.7 billion in revenue have made it the most popular social networking site and a magnet for advertisers.

The IPO could value the social network at about $100 billion and with a possible offering of $5 billion, the Facebook listing will be the largest in Nasdaq’s history, according to data from S&P Capital IQ.

The New York Times said in picking Nasdaq, Facebook had to weigh the differences between the exchanges.

While Nasdaq is a fully electronic marketplace, the New York Stock Exchange offers a hybrid model that combines a floor-based marketplace with an electronic one.

The exchange is widely considered a more global brand as compared with Nasdaq but its pricing structure is more expensive than Nasdaq’s, the report said.

Nasdaq was the “undisputed” leader for technology IPO’s till a few years ago but it has been facing competition from the NYSE, which has spent considerable energy to get upcoming internet companies on its side.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.