LOS ANGELES -- When Facebook makes its long-expected debut as a public company this spring, the social-networking company will likely vault into the top ranks of the largest public companies in the world, on par with the likes of McDonald's, Amazon.com and Bank of America.
The Wall Street Journal reported Friday that Facebook is preparing to file initial paperwork for an offering that could raise as much as $10 billion and value the company at $75 billion to $100 billion. The filing with the Securities and Exchange Commission could come as early as Wednesday, with an initial public offering of stock in three or four months.
The targeted amount would slot it among the world's 25 largest IPOs, although as recently as November 2010, General Motors raised $15.8 billion when it shed majority control by the U.S. government.
The IPOs of 14 companies would rank higher than Facebook's, according to investment adviser Renaissance Capital. Among them were Visa's $17.9 billion IPO in March 2008, the largest for a U.S. company, and world-topper Agricultural Bank of China Ltd., which raised $19.3 billion in July 2010, not including extra shares issued to meet demand.
Facebook spokesman Larry Wu said the company will not comment on IPO-related speculation.
The buzz surrounding an outsized haul for Facebook's founders, employees and early investors remains a hopeful symbol for capital markets following a deep recession. At the reported price, Facebook's IPO would be the biggest for a U.S. Internet company ever -- topping the debut of one of its main rivals, Google.
"We are expecting 2012 to be a year of recovery for the IPO market led by the Facebook IPO," said Kathy Smith, Renaissance Capital's principal.
The event will follow a string of tepid debuts by technology startups including social game maker Zynga and discount advertiser Groupon. The stocks of both companies are just pennies above their offering prices in December and November respectively.
Facebook's will be the most anticipated tech IPO since Google went public in August 2004. Not including shares sold by early investors, the Internet search giant raised $1.2 billion and grabbed a market value of $23 billion, the biggest so far for a U.S. Internet company. The IPO raised $1.9 billion, including shares sold by early investors and extra stock issued to meet the heavy demand. It's not known whether Facebook's $10 billion target includes shares owned by early investors.
Facebook's reported valuation of $75 billion to $100 billion compares with about $100 billion for McDonald's, $90 billion for Citigroup and Amazon.com and $75 billion for Bank of America. It would exceed the market cap of $55 billion for Hewlett-Packard.
Both Facebook and Google earn most of their money from advertising and are now competing to gain as much information as possible about their users to help advertisers target niche audiences.
Despite presumably topping Google's public launch, Facebook spent more time growing behind the veil of private ownership than its rival.
Facebook was founded by Mark Zuckerberg and his college roommates in 2004 and is debuting on stock markets in its eighth year. Google's IPO came six years after being founded by Larry Page and Sergey Brin. When Google turned eight in August 2006, its market cap was roughly $116 billion. Today, the company is worth nearly $190 billion -- down from a peak of about $235 billion in November 2007.
Zuckerberg, 27, is already worth $17.5 billion, based on the latest estimates from Forbes magazine. Most of that wealth is drawn from the value of Facebook shares that have traded among a small universe of well-heeled investors that buy stakes in companies before they go public.