Facebook’s initial public
offering (IPO) has created 996 millionaires including 174 ultra
high net worth individuals (UHNWIs), according to research by
wealth intelligence service WealthInsight.
Indepth analysis reveals
that this new group of UHNWIs (those worth more than $30m), known
as the Facebook Elite, each have an average wealth of more than
$227m.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Based on an IPO price of
$32 per share, WealthInsight estimates that among Facebook’s past
and current employees, 174 UHNWIs, 312 mid-tier millionaires
($5-30m), and a further 511 HNWIs were created in the May 18
IPO.
The figure had been
higher, but Facebook’s stock price suffered a major slump in the
first week of trading, wiping billions off its market
capitalisation.
WealthInsight’s research
is based on a unique proprietary database of 160 Facebook
employees, investors and other beneficiaries.
While there were many
prominent investors and investment companies that benefitted from
the IPO, the focus of the research was employees who joined the
company between 2004 and 2006.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“To put the scale of
Facebook’s IPO as a liquidity event into perspective, the company’s
174 UHNWIs will increase California’s UHNWI population (which now
stands at 7,170) by 2.4%,” the report said.
“On the one hand, the
Facebook Elite are keenly interested in intelligent and exciting
investment opportunities. On the other, young as they are, wealth
preservation is a major concern.
“Thus an approach that
wraps these two preferences in a fully tailored approach is likely
to be well received,” WealthInsight analyst Andrew Amoils said.
WealthInsight’s IPO
research valued the company at a multiple of 79-99 times earnings,
compared with 13.7 and 18.6 for Apple and Google, respectively.
