Former Facebook employee and co-founder Eduardo Saverin, reports Bloomberg, has renounced his US citizenship, ahead of the Menlo Park, California-based social networking giant’s upcoming initial public offer (IPO) next week. The 30-year old Saverin, who currently lives in Singapore, owns about four per cent of Facebook, which is valued at $3.4 billion, according to WhoOwnsFacebook.com.
Facebook kicked off its IPO roadshow on Monday and is expected to start trading on the Nasdaq next Friday under the ticker symbol FB. In case you missed it, check out the roadshow presentation. The company plans to sell 337 million shares priced at between $28 and $35 a share. The Sao Paulo, Brazil-born Saverin’s move to give up US citizenship may help him to save on tax when Facebook goes public, says Bloomberg. Saverin co-founded Facebook in 2004 with CEO Mark Zuckerberg at Harvard University but subsequently moved out of the company due to differences of opinion.
Meanwhile, Reuters reports that the upcoming IPO may already be oversubscribed, quoting unnamed sources. In another report, though, Bloomberg suggests that the IPO has generated lower-than-expected demand from institutional investors, also quoting unnamed sources.
Earlier, Mark Zuckerberg, while addressing investors at the Silicon Valley leg of the IPO roadshow, said that his first priority post-listing would be to improve the company’s mobile application. Investors in Wall Street have raised concerns about the social networking company’s ability to generate revenues from mobile users.
Image Courtesy: Matt Harnack / Facebook