MINNEAPOLIS (WCCO) — Facebook boosted the size of its initial public offering by as much as $3 billion on Wednesday as some major stockholders sharply increased the number of shares they intend to sell as part of Friday’s IPO.

A local expert says the price may be too high. The price per share expected on Friday is now up to between $34 and $38.  Brad Allen of KC and Associates of Minneapolis has 25 years of investor relations experience, and thinks General Motors sent up some red flares this week.

“I think the actions of General Motors in deciding not to continue their paid advertising on Facebook raises some questions about the Facebook business model,” said Allen.

GM’s decision could signal to potential investors that social networking, while popular, won’t deliver the advertising revenue expected to keep the stock price attractive.  However, Allen said that doesn’t mean Friday won’t be exciting.

“I think it is going to be one of the more interesting, closely watched wild rides for an IPO in a long time. It’s got great entertainment value. I think it’s going to be instructive in terms of what the market overall is going to do with these social networking site IPOs,” said Allen.

Allen said he believes Facebook’s share values are expected to climb for a few days after the sale, before finding their base.