Facebook’s long awaited stock is set to list on the NASDAQ OMX Group, Inc. (NASDAQ:NDAQ), when the social marketing giant makes its debut in May. After a long protracted wooing process it is had emerged that Nasdaq got the better of NYSE Euronext (NYSE:NYX) in the fight to get FB stock.
NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) outwitted NYSE Euronext (NYSE:NYX) to land one of the biggest social media IPO in recent days. Nasdaq in a bid to ensure that Facebook joined its camp agreed to slash the normal one year wait, that is mandatory for firms looking enter Nasdaq 100, to just three months. So, with this listing, Nasdaq is set to get ahead of the race on social media issuances and listings
In the share issuance in May, it is expected that Facebook’s value could be as high as $10 billion; and make it one of the largest technology based IPOs in history. This is based on previous returns from the social media giant, which stated that in 2011, it generated $3.71 billion, while the net income was put at $1 billion.
However, according to Chris Dieterich and David Benoit (Wall Street Journal) because the listing fees for the two exchanges is nominal, the choice by Facebook to give NYSE Euronext (NYSE:NYX), the cold shoulder and go with Nasdaq is seen as more of a branding and image issue, than one based on fees. The reason for this is that NYSE is widely regarded as the home of blue chip companies- seen as traditional- while Nasdaq is seen as where Silicon Valley firms- seen as modern- get listed.
But NYSE counters this by saying that in recent years, it has been able to list companies that were more of Nasdaq type such as LinkedIn, Yelp, and even Pandora (NYSE:P). Nevertheless, NYSE CEO Duncan Niederauer jokingly said that they were not sad that they did not get the listing because they were old, and Facebook is meant for the younger generation.
On the other hand, NASDAQ OMX Group, Inc. says that by securing Facebook’s listing, it has ascertained that it is the listing of choice for high tech firms. This is because apart from Facebook, Nasdaq also lists, Google Inc. and Apple Inc. Additionally, it also recently secured listings for Groupon and Zynga.
Although Facebook decided to go with NASDAQ OMX Group, Inc. (NASDAQ:NDAQ), the process that it will use to list the company will not be dictated by this decision. This is because the social giant has already come up with ways to market the process, and created strategies that it will use.
In fact, as the social media giant prepares to list on NASDAQ OMX Group, Inc. (NASDAQ:NDAQ), it has come up with new products. Timeline pages are new products, and are meant to be used together with various brands. Another product is the reach generator that can be used by marketers to ensure that they have their posts on home pages, the log out screen, and even on news feeds of people using the social site.
For the $5 billion IPO, Facebook has already filed paperwork with the Securities Exchange Commission, and enlisted the help of 31 banks to help in the listing.