Zuckerberg’s wealth tumbles by $4.5bn
11 Jun 2012 2:31 AM GMT
The drastic fall in the share price of Facebook has significantly eroded the personal wealth of its 28 year-old co-founder Mark Zuckerberg by a massive $4.5 billion in just three weeks.
Zuckerberg's fortune has declined to $11 billion from $15.5 billion on 18 May when the company went public as investors have dumped the stock amid concerns over growth prospects of the social networking giant, according to the data available with stock exchanges.
Within three weeks of making an entry into the secondary market, the stock value of the company has collapsed by about 29 per cent to $27.10 apiece on Friday from $38 on debut.
Zuckerberg's about 408 million shares were valued at $15.5 billion based on debut price of $38. However, on Friday's closing price of $27.10 apiece, his wealth has shrunk to $11 billion, a erosion of around $4.5 billion.
However, he has already encashed a total of $4.78 billion by offering his 126 million shares in the public issue at the the price of $38 apiece. Zuckerberg, who founded Facebook out of his Harvard University dormitory in 2004, sold shares to use the IPO proceeds to pay taxes.
As Facebook's stock price has declined, so has its market capitalisation. The company's current market cap is about $58 billion. However, when the company went public, its market value was about $104 billion.
With 901 million users as of 31 March 2012, Facebook was actually planning to sell 337.41 million shares in the initial public offering [IPO] at a price between $28 and $35 per share.
At the last moment, the company had increased the size of the public issue by offering an additional 25 per cent stake and also raised stock price to a range of $34 and $38 a share.
Contrary to widespread expectations, Facebook's stock market debut did not live up to all the hype so far.
Zuckerberg's fortune has declined to $11 billion from $15.5 billion on 18 May when the company went public as investors have dumped the stock amid concerns over growth prospects of the social networking giant, according to the data available with stock exchanges.
Within three weeks of making an entry into the secondary market, the stock value of the company has collapsed by about 29 per cent to $27.10 apiece on Friday from $38 on debut.
Zuckerberg's about 408 million shares were valued at $15.5 billion based on debut price of $38. However, on Friday's closing price of $27.10 apiece, his wealth has shrunk to $11 billion, a erosion of around $4.5 billion.
However, he has already encashed a total of $4.78 billion by offering his 126 million shares in the public issue at the the price of $38 apiece. Zuckerberg, who founded Facebook out of his Harvard University dormitory in 2004, sold shares to use the IPO proceeds to pay taxes.
As Facebook's stock price has declined, so has its market capitalisation. The company's current market cap is about $58 billion. However, when the company went public, its market value was about $104 billion.
With 901 million users as of 31 March 2012, Facebook was actually planning to sell 337.41 million shares in the initial public offering [IPO] at a price between $28 and $35 per share.
At the last moment, the company had increased the size of the public issue by offering an additional 25 per cent stake and also raised stock price to a range of $34 and $38 a share.
Contrary to widespread expectations, Facebook's stock market debut did not live up to all the hype so far.
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