Facebook surges in grey trading

Facebook's value rose to $123bn in grey trading yesterday as it prepares for a $5bn float later this year.

The social networking giant's market cap soared in grey market trading - when shares are traded on an unofficial market prior to an IPO - run by financial spread betting firm IG Group, reports City AM. IG Group ran similar markets prior to the official launch of other IPOs. At the end of trading yesterday, its traders valued Facebook at $112bn. A spokesperson for the group said its clients are bullish on Facebook's growth prospects, and expect a large take-up when the firm launches its IPO. Although no target price has yet been announced for the offering, analysts expect Faceboo...