image source: Facebook

More developments in Facebook’s IPO preparations. Mutterings on Wall Street say the company could start its IPO process as early as this morning.

All Things Digital is citing unnamed sources close to Facebook who say an IPO is imminent. The company is expected to file a preliminary prospectus for $5 billion -- lower than investor estimates.

ZDNet explains -- there’s a reasoning behind the smaller offering.

“A smaller IPO will increase demand for Facebook shares and therefore its valuation. It will also give Facebook options to increase the number of shares available prior to the IPO while still keeping a tight hold over pricing.”

Portfolio manager Larry Haverty tells CNBC-- demand won’t be a problem. Everyone wants a piece of Facebook’s stock.

“I think it’s going to be a fantastic feeding frenzy, Melissa. Every growth investor on the planet will be involved. Tremendous public demand. It’s obviously going to go up in the first two days of trading.”

VentureBeat reports Facebook has hired five investment banks to handle the IPO process.

“Facebook has selected five bookrunners to help get its offering processing, and it has put Morgan Stanley in the lead-left role. Goldman Sachs, Bank of America/Merrill Lynch, Barclays Capital, and JP Morgan will also help with the deal.”

Meanwhile, NASDAQ and the New York Stock Exchange are fighting over Facebook’s listing. The Wall Street Journal reports Facebook is waiting for its best deal.

“It’s just a negotiating ploy. The longer they wait here, the better the chances that they’re going to negotiate better terms for themselves.... what it seems like they’re going to do, is just wait as long as they can before making a final decision.”

Facebook won’t be tradeable until its paperwork passes SEC muster, which could take a few months. But in the meantime the company has reserved ‘FB’ as its ticker symbol.