Reuters says the Facebook IPO is oversubscribed – that institutional buyers who have already bought in are calling around looking for some way to somehow get more stock.
Meanwhile, Bloomberg says that just the opposite – that demand for the IPO is weak and that Facebook is going to have to rely on retail investors for its offering to pop.
Here’s what’s probably going on: Buyers who want the price of Facebook shares to go down are telling reporters that demand is weak. Bankers selling the IPO, who want to the price to go up, are telling reporters that the thing is oversubscribed.
You can kind of tell what’s happeneing because of the way both Bloomberg and Reuters carefully couched reporting.
The Reuters headline is: “Facebook’s IPO already oversubscribed -source.” That means: “one guy who should know told us.”
The Bloomberg headline is: “Facebook IPO Said to Get Weaker-Than-Forecast Demand.” That means “this may not be what’s actually going on, it’s just what some people SAY is going on. So don’t blame us if it isn’t true.”