Going public is when a privately owned company sells a portion of its shares on the public market, with the founders and original stakeholders forfeiting a percentage of their company ownership.
Typically, the aim of going public is to raise funds that can be reinvested into the company, with companies that go public often looking to expand.
So, when did Facebook take this leap and move from being a privately owned company into being a public one?
Facebook’s Move From Private to Public
Facebook released its IPO (Initial Public Offering) on May 18, 2012. At this time, shares were valued at $38.00 each, with the number of share releases equating to 421,233,615.
As a result of its launch in the public space, Facebook raised $16 billion by selling these shares – a record at the time, upholding the expectations surrounding the tech world’s most prolific IPO release in history.
As is often the case, it was not all plain sailing, as share value dropped significantly over the following months. In September 2012, shares were worth just $17.55.
However, Facebook’s value has skyrocketed in the years since and with the acquisition of other companies like WhatsApp and Instagram. Facebook, now Meta’s, highest share price to date occurred in May 2023, closing at $378.69.
Is Facebook a Good Investment?
With Facebook continuing to acquire valuable assets and companies which support its rise as one of the most successful and prolific social platforms of all time, shares are always going to offer a good return on your investment.
We hope this helps! The world of investments and shares is not one to be entered into lightly and should be thoroughly researched before you take your first steps into investing. However, as evidenced by the significant rise in share value over the years, placing your faith in the right companies can certainly pay off in the long run.
