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Facebook raises price range for IPO - source

Facebook has raised the price range on its initial public offering to $34 to $38 a share in response to strong demand, a source familiar with the situation said, giving the social network a valuation exceeding $100 billion.

At the midpoint of $36, Facebook would raise $12.1 billion by selling 337.4 million shares. The company founded in a Harvard dorm room by Mark Zuckerberg, who turned 28 Monday, had originally aimed for $28 to $35 a share.

Wall Street analysts had expected the company to increase the price range, with investors keen to get in on Silicon Valley's largest-ever IPO, eclipsing Google's 2004 debut. A roadshow that began last week has drawn crowds.

The company plans to close the books on its IPO on Tuesday, two days ahead of schedule, in a signal that the landmark initial share sale is drumming up strong demand, a second source familiar with the deal told Reuters earlier.

The company is scheduled to price its shares Thursday, and they will begin trading Friday on the Nasdaq stock market.

The IPO is already "well oversubscribed," which is why the company is closing its books earlier than anticipated, the source said.

The raised price range marks an increase of 21 percent on the lower end. A hike of more than 20 percent typically means the company would have to file an amendment with the Securities and Exchange Commission.

Company spokesman Jonny Thaw declined to comment Monday.

The IPO comes amid concerns from some investors that Facebook hasn't yet figured out a way to make money from the growing  number of users who access the social network on mobile devices such as smartphones.

Facebook will continue with its roadshow for the rest of the week, said a third source familiar with the deal, and investors who haven't yet attended a roadshow presentation will still be able to place orders.

Company executives met with prospective investors in Chicago Monday and are slated to travel to Kansas City and Denver, before returning to Menlo Park, Calif., where Facebook is headquartered.

A host of Wall Street banks are underwriting Facebook's offering, with Morgan Stanley, JPMorgan and Goldman Sachs serving as leads. Facebook will trade under the symbol "FB."

CNBC reported the higher price range earlier, citing sources.