Facebook expected to increase IPO price

Due to signs of strong demand from investors for shares in its upcoming initial public offering, Mark Zuckerberg’s company Facebook is raising the target price range for its stock, two news reports say. Facebook is expecting to increase its shares to $34 to $38 each, up from the $28 to $35 range that was set earlier this month, according to reports from Reuters and the Wall Street Journal on Monday.

Within the past two weeks, Facebook executives and the social network’s IPO underwriters have been on the road meeting with potential investors and measuring the demand for the company’s stock. According to CNNMoney, responses from the investors have been “nothing short of pandemonium.” If the company implements its new price range, Facebook’s valuation could reach $81.2 billion on the day of its IPO. The higher price is not binding, but could rise further if demand continues to grow heavy. Facebook expects to set its final price on Thursday evening. The IPO is on track to occur on Friday, May 18.