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Swedish wealth fund, Sjunde AP-fonden buys Facebook Shares
Wednesday, 16 May 2012
Swedish pension fund, Seventh AP Fund has bought into in Facebook,
expecting to invest Skr400 million in the social network company when
it will begin trading on the Nasdaq exchange in the U.S. at the end of
Although leading advertisers on the site such as GM are pulling out,
questioning the power of the social network in generating the type of
wealth being talked about, Facebook is still assessed to be so big that
it has an impact in various indices, and it is very likely that “we
follow the index,” said Svante Linder, general manager of the Swedish
wealth fund, Seventh AP Fund, to Swedish daily, Dagens Nyheter.
Linder compares the scenario with Apple which the Fund invested Skr 2 billion.
In addition to the 2.7 million Swedes, who did not choose the fund but
who are strong IT users and ended up in the Seventh AP Fund, those who
actively chose funds with a focus on IT and North America will share in
Facebook share ownership.
Pension Company AMF would not comment on possible purchase of the
shares in the company. “Facebook is a great company, but the business
model is still a bit untested, so it's a bit of buying dreams. In order
that the valuation should be kept in tact, a long-term is needed for
everything to right,” says Magnus Sj÷berg, who is the manager of
equity fund North America, told Dagens Nyheter.
Fund expert Jonas Lindmark urges caution and advises to let the first
baiting around the company fold, only to see at what level the stock
Facebook will increase the volume of initial public offering of 85
million shares at around 422 million, said an informed source to
Reuters. Facebook had initially planned to sell 337.4 million shares.
Previously, the company announced that the subscription price of shares
was to increase from a previous price range of 28 - 35 dollars per
share to the new price is 34 - 38 dollars.
With an average price of $36 it would mean that the increased volume
mean the listing gives the company an additional $15.2 billion.
By Scancomark.se Team
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