By RTT News,
December 20, 2013, 05:11:00 PM EDT
(RTTNews.com) - Social networking giant Facebook, Inc. ( FB ) said Friday that it has priced its underwritten registered public offering of 70 million shares of its Class A common stock at a price to the public of $55.05 per share.
A total of 27,004,761 shares are being offered by Facebook, and a total of 42,995,239 shares are being offered by certain selling stockholders, including 41,350,000 shares offered by the company's founder and CEO Mark Zuckerberg.
The offering is expected to close on December 26.
Facebook plans to use the net proceeds of the offering for working capital and other general corporate purposes The company will not receive any proceeds from the sale of shares by the selling stockholders.
Facebook expects that the majority of the net proceeds Zuckerberg will receive upon the sale of shares in the offering will be used to satisfy taxes that he incurred in connection with his exercise, in full, of an outstanding stock option to purchase 60 million shares of Class B common stock.
J.P. Morgan, BofA Merrill Lynch, Morgan Stanley and Barclays are serving as joint bookrunners for the offering. BNP PARIBAS, Citigroup, RBC Capital Markets, Credit Suisse, HSBC, RBS, Standard Chartered, Piper Jaffray and Allen & Company LLC are serving as co-managers for the offering.
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