Facebook (NASDAQ: FB) is set to have its IPO (initial public offering) on Friday, May 18, at a tentative price range of $34-38 per share. Although ING DIRECT Investing is not participating in the underwriting of this IPO, we will accept orders for Facebook once it starts trading on the market exchanges.
Assuming the date stands, here is a timeline of the IPO and trading:
|Date & Time
|May 17, at 4 PM ET
||We begin accepting limit orders for Facebook.
|May 18, early hours
||Underwriters complete the IPO.
|May 18, typically sometime
|Underwriters decide Facebook shares can trade on the secondary market.
Once trading begins on the secondary market, we will accept all order
types, including market orders.
All dates and times are approximate and subject to change.
Check if a quote is available for Facebook (NASDAQ: FB)
The Fastest Way to Transfer Money
Want to get in, but can't wait for that money transfer? Pull funds from your bank and trade right away – no transfer delays. Simply enter a buy order, select Express Funding (for just $6.95 or free with your ING DIRECT bank account) and enter your bank details.
More on Trading the First Day
The night before Facebook actually hits the exchanges – also called the secondary market – you can
place your open order, to be sent to the exchanges once the shares are trading. A limit order is
required, which allows you to set a maximum price per share you're willing to pay. This is because even
though the IPO price is fixed, no one knows exactly what the share price will be once they're available
on the secondary market. It's likely that the first public trades for Facebook will be a very different price
than the IPO price.
There's no one right way to choose your limit order price, but remember that if your limit price is lower
than the market price once shares begin trading, and the price stays above your target price, your order
will not be filled. You can always cancel an open limit order and place a market order.
A few other things to note:
- Sometimes, it can take a few minutes, or a few hours, after the market opens before shares
- Once the shares start trading and the market determines a price, you may begin placing market
orders (but a market order never guarantees a particular price).
- If the market price is above your limit price when you place a buy order, your order will not fill,
and it's possible it will never fill, and you won't own those shares.
- It is anticipated that there will be a lot of volume on this stock when it first begins trading, so it
may take more time than usual for orders or order cancelations to process.
Don't forget—you can always stay up-to-date about the latest IPO news by visiting Research > IPOs.