Facebook IPO could beat Google five times over

Social networking giant Facebook is set to begin the process of becoming a publicly listed company this week, with reported valuations of between $75bn (£48bn) and $100bn dwarfing Google’s $1.9bn IPO in 2004.

The company is set to file papers with the US financial watchdog on Wednesday, according to the Financial Times.

Its flotation at around $10bn would be one of the largest share sales seen on Wall Street in history. The largest ever was that of General Motors in November last year, which raised $20bn.

The FT reported Facebook's shares have been changing hands in private secondary markets at levels valuing the company at about $80bn, but the company could be worth anything from $75bn-$100bn by the time it reaches Wall Street.

It is possible if the market looks weak at the time of the IPO, a more modest amount could be initially floated with plans to sell more later.

Reports have suggested Morgan Stanley will be the lead underwriter for the sale, with Goldman Sachs also named as a front-runner.

Rumours surrounding the IPO have been circulating for months and the reported valuation would make the company one of the world's largest by market capitalisation.

However, analysts have warned the deadline could slip due to unexpected problems with the company's regulatory filing or external news.

As a private company, Facebook does not have to publish its accounts, but reports in January last year suggested the firm made a net profit of $355m on revenues of $1.2bn in the first nine months of 2010.

The site was first created in a Harvard University dorm room eight year ago and now boasts over 800 million active users.