Investors are rushing through the back door in a bid to cash in on Facebook’s much-hyped IPO.
GSV Capital — which trades on the open market but invests in a portfolio of private companies from Facebook to Twitter — sold 6 million more shares yesterday, raising around $100 million, as investors looked for ways to profit from the social network’s public debut next week.
GSV has a $120 million portfolio, including $11.2 million worth of Facebook shares that it bought on the private market last year.
“Now, I have a stake in Facebook’s IPO, something to root for,” said one investor who scooped up 6,000 GSV shares.
Facebook’s IPO is expected to raise more than $10 billion at a valuation that could approach $100 billion, the largest ever for a tech company’s debut.
Facebook shares have so far been priced between $28 and $35, but strong demand is expected to boost that range. GSV bought Facebook shares at about $29 apiece last year.
GSV shares sold for $16.25 in yesterday’s offering, which was a discount to where the stock had been trading. Shares closed down 5 percent yesterday to $17.18.
Facebook, IPO.GSV Capital, GSV, private companies
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