Swedes' pension hopes tied to Facebook IPO
Published: 16 May 12 16:44 CET | Print version
Online: http://www.thelocal.se/40876/20120516/
Close to 3 million Swedes will be watching the upcoming stock market debut of Facebook with added interest after news emerged on Thursday that a major Swedish pension fund planned to invest in the social networking site's initial public offering.
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AP7's participation in the Facebook IPO means that 2.7 million Swedes will be indirect owners of stock in the popular social networking site, which boasts nearly 1 billion users worldwide.
At the same time, a survey by Swedish online brokerage firm Avanza has revealed that around 7 percent of Swedes are considering buying Facebook stock directly as individual investors.
AP7, the default pension fund for Swedes who opt out of making an active investment choice for their public pensions, plans to invest around 400 million kronor ($56 billion) in Facebook, when it gets listed on the Nasdaq stock exchange in New York later this week.
That means that each AP7 pension saver will end up having about 150 kronor of their pension savings invested in the internet company, according to the Dagens Nyheter (DN) newspaper.
Facebook hopes to raise about $15 billion by releasing more than 400 million shares in the company with a price range of $34-$38 per share, according to the Reuters news agency.
Some analysts have projected that Facebook's IPO could end up valuing the company at more than $100 billion, but many remain skeptical about the valuation of the company, which needs to see a drastic rise in advertising revenue in order to live up the high expectations surrounding the public offering.
One of the skeptics is Avanza economist Claes Hemberg, who is concerned that interest in Facebook stock is so high among Swedes.
"There are a lot of young people who risk making their first and worst deal of all time," he told the TT news agency.
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If they have chosen "AP7", this could indicate they don't care or feel they are qualified to make such financial investment choices to their pension investment plan.
Claiming that close to 3 million will be watching with added interest is a gross exaggeration, and bears no merit.
However, claiming TL poor use of "journalism" and misrepresentation to sell Ad space and get hits would be more reliable.
/Yet another poor article
#TheLocal #PoorJournalism #DavidLandes #Sensationalism #DL #Sweden
400 million SEK= USD 56 billion? I'm gonna invest in Swedish Kroner then.
Safer investment than another Californian dot.bomb company.
When I am due for a payout in 25 years or so, I expect to get a coin and an excuse.
"We gambled away most of your money, and the remaining bit was given to our board of directors in bonus. Our heartfelt condolences, but that is how the game works that you unwittingly signed up for in one way or another."
I hope all those Swedes whose pension funds are invested in the dog are happy.