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Facebook IPO may be downsized to $5 billion

New sources revise the offering from $10 billion down to $5 billion. That would still make Facebook's IPO 3 times larger than Google's.

A Lego model of the Facebook logo sits on the desk of a programmer inside the company's office in Palo Alto, Calif., in June 2009.
Don't look for any IPO clues here. This photo of Facebook's Palo Alto, Calif., offices is from June 2009.
James Martin/CNET

Facebook's initial public offering may raise $5 billion, half of what was previously estimated, according to a new report on International Financing Review. Facebook is expected to file papers to go public as early as tomorrow.

A $5 billion IPO would still put Facebook at the top of the stats box on money raised in tech IPOs. Google raised $1.9 billion in 2004. More recently, Zynga raised $1 billion, and Groupon raised $700 million. Social network LinkedIn raised $353 million.

Also still unknown: how much of the company will be offered. Early stories pegged that figure at 10 percent, giving Facebook a $100 billion market capitalization. If the offering is "reduced" to $5 billion from $10 billion, it's not known if the proportion of the company being offered will also be adjusted.

The Thomson Reuters-owned IFR reports that Morgan Stanley will lead the offering, with four other banks--Goldman, Bank of America, Merrill Lynch, and Barclays--also bookrunning the deal.