Demand drives up size of Facebook float

Facebook has increased the size of its initial public offering by almost 25 per cent, and could raise as much as $16bn (£10bn) as strong investor demand for a share of the social network trumps debate about its long-term potential to make money.

The additional shares will be sold by early investors including the co-founder of PayPal, Peter Thiel, Accel Partners' James Breyer and investment manager Tiger Global Management.

The company itself has not increased the number of shares it will sell.