Big banks are vying to win the coveted spot as the lead investment bank to handle Facebook?s impending 2012 IPO. Venture capitalists and bankers say that Morgan Stanley and Goldman Sachs (NYSE:GS) Group are the two front runners for the title.
The Wall Street Journal cited a source close to the matter who says that Facebook plans to file its IPO paperwork in early 2012, meaning that a bank decision could be made soon. A different source told the WSJ that some bankers were waiting by the phone over the holidays hoping to receive news that they would be involved in the initial public offering in some way.
The sale of Facebook?s stock is expected to bring in about $10 billion. Dealogic says that the average fee charged for sales of that size is about 2.2%, which translates to $220 million, though Facebook?s stature could enable them to negotiate a better deal. Both Morgan Stanley (NYSE:MS) and Goldman Sachs have negotiated large deals in the past that prove their abilities. Dealogic reports that both firms are jockeying for the claim to underwrite the most U.S. IPO?s in 2011. Facebook, Morgan Stanley and Goldman Sachs all declined to comment.
With the positive Facebook catalyst for IPOs this year, here?s how the following banks are reacting to the news:
The Goldman Sachs Group, Inc. (NYSE:GS): GS shares recently traded at $93.97, down $1.39, or 1.46%. They have traded in a 52-week range of $84.27 to $175.34. Volume today was 2,447,917 shares versus a 3-month average volume of 7,764,980 shares. The company?s trailing P/E is 14.29, while trailing earnings are $6.57 per share.
Morgan Stanley (NYSE:MS): MS shares recently traded at $15.75, down $0.33, or 2.05%. They have traded in a 52-week range of $11.58 to $31.04. Volume today was 7,367,610 shares versus a 3-month average volume of 35,215,400 shares. The company?s trailing P/E is 10.33, while trailing earnings are $1.53 per share.
Bank of America Corporation (NYSE:BAC): BAC shares recently traded at $5.73, down $0.07, or 1.21%. They have traded in a 52-week range of $4.92 to $15.31. Volume today was 94,992,597 shares versus a 3-month average volume of 261,203,000 shares. The company?s trailing earnings are $-0.31 per share.
JPMorgan Chase & Co. (NYSE:JPM): JPM shares recently traded at $34.62, down $0.11, or 0.32%. They have traded in a 52-week range of $27.85 to $48.36. Volume today was 11,024,894 shares versus a 3-month average volume of 43,059,700 shares. The company?s trailing P/E is 7.38, while trailing earnings are $4.69 per share.
Wells Fargo & Company (NYSE:WFC): WFC shares recently traded at $28.30, down $0.13, or 0.46%. They have traded in a 52-week range of $22.58 to $34.25. Volume today was 8,811,888 shares versus a 3-month average volume of 36,545,900 shares. The company?s trailing P/E is 10.48, while trailing earnings are $2.70 per share.
Morgan Stanley (NYSE:MS): MS shares recently traded at $15.75, down $0.33, or 2.05%. They have traded in a 52-week range of $11.58 to $31.04. Volume today was 7,367,610 shares versus a 3-month average volume of 35,215,400 shares. The company?s trailing P/E is 10.33, while trailing earnings are $1.53 per share.
To contact the reporter on this story: Brooke Edge at staff.writers@wallstcheatsheet.com
To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com
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Source: http://wallstcheatsheet.com/stocks/who-will-handle-facebooks-coming-ipo.html/
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