New York February 2 (FinanceEnquiry.com) - Facebook IPO does not seem to be attracting wealthy investors as some of them own the stock through private transactions, whereas others do not seem to be willing to take risks for technology deals. Investors have also not forgotten the tech bubble and are rightly skeptical.

The world’s biggest social-networking site filed papers yesterday to raise $5 billion through an initial public offering, which is seen to be the largest. The Menlo Park, California- based company hired Morgan Stanley (NYSE: MS), JPMorgan Chase & Co. (NYSE: JPM), Goldman Sachs Group Inc. (NYSE: GS), Bank of America Corp. (NYSE: BAC), Allen & Co. and Barclays Plc (NYSE: BCS) to handle the deal. The figure of $5 million is merely a placeholder that is needed to calculate fees. This figure can change anytime.

As revealed by recent experiences of IPOs, investors might have to be prepared for below-average returns if they can afford to buy and hold shares at the offering price. If they sell shares into an early run-up in the stock price, they might be slammed with large tax. Some seasoned investors said that it would be advisable for individual investors to hold back and watch the movements before making their move to buy.