Top Mark for Facebook

Update 9pm BST Share price set @ $38 top of range.

As the IPO is due to take place tomorrow (with the final pricing announcement later today) we thought we would see how much some of the founders / early investors are rumoured to be making and what if any, ahem, planning is likely taking place. The values are after the recent announcement of an increase of circa 25% in the number of shares to be offered (with we believe nearly all of the increase coming from existing investors). Bottom lining it of the between $14  billion and $16 billion being raised (re the share price range of $34 to $38)  57% a whopping $9 billion ish goes to sales by existing founders, investors & employees.

You may have seen our previous blog post  on the Facebook IPO which has links to the SEC filings and lots more “stuff” as Mark Zuckerberg often references.

But before revealing all, here is the 32 minute Facebook’s Roadshow Video which we strongly recommend watching in full & bookmarking for future reference either here or at YouTube. .

So on to the money side:

  •  Mark Zuckerberg (who was 28 this past Monday) stands to receive over $1.1 billion on his likely share sale in connection with the IPO . He is using an annuity trust for some of his holdings likely a GRAT (grantor-retained annuity trust) to reduce his tax bill  The Detroit Free Press has an interesting perspective on Mr Zuckerberg.
  •  Eduardo Saverin a co-founder owns circa 4% of the company, which amounts to a little over $4 billion. He has already, apparently, renounced his U.S. citizenship in favour of Singapore thus avoiding possibly around half a billion US $ in tax. A lot of detail is provided by a local at e27.
  •  Dustin Moskovitz, Sean Parker, Sheryl Sandberg, and Reid Hoffman (See below) are also going down the annuity trust route.
  •  Peter Thiel  may profit by over $500 million at IPO time
  •  Our favourite Russian investor Yuri Milner  via his various Digital Sky Technologies funds (and also possibly Mail Ru) may, reach over the  $2 billion level
  •  Even Goldman Sachs won’t be far off the billion $ level

We will no doubt return to comment on some of the excitement tomorrow!

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