Facebook's initial public offering (IPO) is just days away, and while the company initially aimed for $28 to $35 a share, now it plans to raise the price range to $34 to $38 a share, according to a person familiar with the matter cited by CNBC. The new price range may be announced in a regulatory filing as soon as Tuesday, May 15, said the source, who spoke under condition of anonymity because the plans have not been made public yet.

Facebook was already planning the largest IPO ever for an Internet company. Now, based on the high end of the new range, the company would raise as much as $12.8 billion, and seek a valuation of $104.2 billion. Facebook was already in a position to dethrone United Parcel Service as the most valuable company ever to go public in the U.S., based on market capitalization.

The Books Are Closing

On Monday, May 14, Bloomberg reported that Facebook plans to stop taking orders for its IPO on Tuesday, two days ahead of schedule, according to a source with knowledge of the transaction. The offer of 337.4 million shares was oversubscribed, said people familiar with the matter, who refused to say by how much the orders exceeded the amount of stock on offer. "They're swamped with the orders that are in," said Merriman Holdings Chief Executive Jon Merriman. "They just need time to determine the price. They can send the message - the books are closing, send in your orders now."

On the other hand, some institutional investors had hesitated at buying into Facebook over concerns about the company's growth prospects, people close to the matter said last week. According to a Bloomberg Global Poll of more than 1,250 investors, analysts and traders, 79 percent said the Menlo Park, California-based company did not deserve such a high valuation.

Too Expensive

"Facebook's pricing seems to be quite expensive," said Yves Maillot, head of investments at Paris firm Robeco Gestions. The IPO is also pushing into a "very difficult environment for the U.S. equity market," added Maillot.

Facebook initially intended to stop taking orders Thursday, May 17. Its shares will be listed on the Nasdaq Stock Market under the symbol FB. Morgan Stanley, Goldman Sachs and JPMorgan Chase are leading the sale.

(reported by Alexandra Burlacu, edited by Dave Clark)