With its rocky initial public offering
now a distant memory, Facebook said today that will make a secondary
offering of its stock next week that could raise $1.5 billion. The
company said in a blog post
that it will sell 70 million shares priced at $55.05, using the
proceeds "for working capital and other general corporate purposes."
Meanwhile, CEO Mark Zuckerberg plans to sell 41.3 million of his own
shares, with the majority of the proceeds used to pay taxes on the
exercise of his stock options earlier this year. Both sales are expected
to take place Thursday.
Also today, Facebook became an official member of Standard & Poor's S&P 500 Index, which comprises common stocks picked by the financial company. The move, which follows several quarters of strong profits,
means Facebook will now be traded as part of the index funds popular
with mutual funds and other investment vehicles. Given the troubles
Facebook's stock had in its early days as a public company, its
inclusion in the S&P 500 is a sign that investors are putting their
early worries behind them.
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