Facebook’s IPO Price: $38 Per Share

Facebook’s IPO price: $38 per share

By Julianne Pepitone @CNNMoneyTech May 17, 2012: 5:15 PM ET

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Faceboook CEO Mark Zuckerberg will oversee a $16 billion IPO, making it the third-largest IPO in U.S. history.

NEW YORK (CNNMoney) — After four months of paperwork, hype and speculation, the last piece of the Facebook IPO is in place: Facebook said it has priced its IPO at $38 a share.

At that price, Facebook’s IPO will raise $16 billion, making it the largest tech IPO in history. It’s the third largest U.S. IPO ever, trailing only the $19.7 billion raised by Visa (VFortune 500) in March 2008 and the $18.1 billion raised by automaker General Motors (GMFortune 500) in November 2010, according to rankings by Thomson Reuters.

There are still a few more steps before Facebook’s shares are ready to trade. The company is waiting for the Securities and Exchange Commission to declare its IPO effective — the formal green light Facebook and its underwriters need before they can sell shares to outside buyers.

The $38 IPO price is the rate at which Facebook’s underwriters (including lead banker Morgan Stanley) will sell shares to their clients, which typically include large institutional investors, mutual funds and hedge funds.

Shares will be released Thursday night to those buyers, who can resell them on the open market beginning on Friday.

Some shares were made available to individual investors, but getting them typically requires either a lot of money or a lot of trading experience. It also required moving fast. Many brokerages offering pieces of Facebook’s IPO allotment “closed their books” on Tuesday, meaning they stopped taking orders.

When can I buy? Ordinary investors looking to get a piece of Facebook will have to wait until Friday morning.

Unlike Google (GOOGFortune 500), whose IPO used a “Dutch auction” to allow direct bidding by investors, Facebook’s setup doesn’t give regular folks access until shares begin trading publicly on the tech-heavy Nasdaq exchange.

While the market opens at 9:30 am ET on Friday, Facebook’s shares won’t start trading instantly. It typically takes time — sometimes an hour or more — for newly listed shares to begin actively trading on the day of their public debut.

How much Facebook is worth: Facebook’s (FB) market capitalization will hover around $81 billion on the day of its IPO.

Many Facebook employees and executives hold unexercised stock options. If all of those shares were exercised, Facebook’s outstanding share count would rise to around 2.8 billion — pushing the company’s total valuation closer to $107 billion.

Who’s selling shares: Facebook CEO and founder Mark Zuckerberg plans to sell 30.2 million shares in the IPO offering. That will net Zuckerberg about $1.1 billion.

But Zuckerberg won’t be hanging on to his cash. Facebook said he will use the “substantial majority” of the windfall to cover the massive tax bill he’ll be hit with, thanks to his plan to exercise a large stock-options grant that will increase his ownership stake in the company he founded.

After the offering, Zuckerberg will hold 503.6 million shares, or about 31% of the company. That stake is worth $19.1 billion.

Venture capital firm Accel Partners, which is the largest shareholder outside of Zuckerberg, is selling 49 million shares in the offering. That’s about a quarter of its Facebook holdings.

– CNNMoney’s Chris Isidore and Maureen Farrell contributed reporting. To top of page

First Published: May 17, 2012: 4:20 PM ET

Fundraisers are in Bloom/Courtesy Mention Brettany Harrison

Around Town: The fundraisers are in bloom

By Anita S. BrennerApril 21, 2012 | 6:13 p.m.

Spring is here and the fundraisers are blooming.

In a down economy, we must be creative.

Last Sunday, we attended the most creative Hillsides Guild “Day at the Races.”

The Hillsides Guild supports the Hillsides center, which began in 1913 as an Episcopal orphanage. Today, Hillsides is a private, nonprofit children’s foster care and treatment center, with a focus on counseling and mental health.

Hillsides’ “Day at the Races” is the brainchild of La Cañadan Dee Fisher. Dee is a fellow member of the Thursday Club.

Each year, Dee rallies the guild members, assorted husbands and others. I’m not a member of the guild, but we always support Dee’s events, which, like their organizer, are a charming amalgam of fundraising, friend-raising and elegance.

This year, Dee partnered with an energetic co-chair named Astrid Fishbein. Their aides de camp, who each made mass purchases of raffle tickets, were Dee’s husband, a local viticulturist named Mark Martinez, and Astrid’s husband, a man of many talents named Michael Fishbein.

Martinez explained, “I started coming six years ago, when I first met Dee, and now I’m hooked. This is a wonderful cause. The guild is an all-volunteer organization. Their efforts allow the kids to have extra activities, like the annual picnic or a bowling night. These ladies are wonderful.”

The raffle baskets were assembled by La Cañadan Aline Kuhnle, who attended with her husband, Paul.

“This is the most fun we’ve had all year,” exclaimed Kuhnle.

At Santa Anita Racetrack, the mountains are gorgeous, the food is good and within minutes of arrival, even if you are a teetotaler, you totally mellow out.

Except for mixing up a trifecta with a trifecta box, this year I almost won a lot of money. Plus, there was a lot of chocolate, courtesy of Brettany Harrison, a charming young broker from Coldwell Banker.

Meanwhile, over at Flintridge Prep, the parents are beginning to gear up for the annual Flintridge Prep Parents and Alumni Golf Tournament and Dinner, scheduled for April 30 at the La Cañada Flintridge Country Club. Kudos to Randy Dreyfuss for making our town’s only golf course available for so many charity events.

Prep now has a gender-neutral parents association. Back in the day we had the Mother’s Club that did all the work, and the Father’s Club, which had one guy who did all the work and other guys who watched.

The Flintridge Prep Father’s Club Blanket Sale was one of the most successful and price-variable development schemes in the history of any local school. The La Cañada Flintridge Educational Foundation should take note.

By the time this Valley Sun arrives on your doorstep, Flintridge Sacred Heart Academy’s Disco Divas of the ’80s will be arriving home from the 2012 Gala, held on Saturday at the Langham Huntington Hotel in Pasadena.

The online auction includes a decrepit wheelbarrow aptly named, the Wheelbarrow of Booze. “Bring home this red wheelbarrow and your bar will be stocked for your next party, and much more,” read the description. The Wheelbarrow of Booze was valued at more than $1,000.

Now, that’s creative.

ANITA SUSAN BRENNER is a longtime La Cañada Flintridge resident and an attorney with Law Offices of Torres and Brenner in Pasadena. Email her at anitasusan.brenner@yahoo.com and follow her on Twitter @anitabrenner.