Facebook insiders add shares to boost IPO Early in

Facebook insiders add shares to boost IPO
Early investors, VC firms may see additional $3 billion from debut

By Dan Gallagher, MarketWatch
SAN FRANCISCO (MarketWatch) — Strong demand has allowed several early investors in Facebook to add more shares to the company’s pending initial public offering, bringing the total value of the IPO to about $16 billion.

In a filing with the Securities and Exchange Commission on Wednesday morning, Facebook (NASDAQ:FB)  added about 83.8 million shares to its initial public offering, which is expected to price later in the week. The shares will be sold by selling shareholders; the company maintained its plan to sell 180 million shares for its own coffers.
The estimated price range of the offering remains between $34 and $38 per share. Facebook is currently expected to make its trading debut on the Nasdaq on Friday morning under the ticker symbol “FB.” The company is running the last of its investor roadshows for the IPO on Wednesday near its Silicon Valley headquarters.

In an article in the Wall Street Journal late Wednesday afternoon, unnamed sources claimed that Facebook asked some of its early investors to sell more shares in the offering. The social network was allegedly concerned about a large post-IPO lockup hanging over the stock, according to these sources.

The increased share count comes at a time when some questions have emerged about the strength of the company’s advertising business, which accounts for more than 80% of its revenue base. Many of Facebook’s users are shifting to apps on mobile devices, where the company has so far failed to generate any revenue.