Facebook are now expected to raise $5 billion in a preliminary IPO prospectus on Wednesday morning. This is much less than expected, but could balloon out from here based on investor demand "according to sources close to the deal," reports the International Financing Review.

The smaller deal is reportedly reflecting a decision to start with a conservative base, before deciding whether to increase. Facebook has chosen to hire five bookrunners including Morgan Stanley, Goldman Sachs, Bank of America Merrill Lynch, Barclays Capital and JP Morgan. This list could grow, also.

Facebook are expected to finalise the IPO process by May, if everything goes right with the registration process with the SEC. It has been reported that Facebook have been "unusually guarded" about the process for selecting banks involved in the underwriting syndicate. Obviously because this would be not only a stressful move, but a very strategic move for their future growth.