FACEBOOK IPO: THE WORST PERFORMER IN A DECADE
Believe it or not, Facebook’s first 5 days as a public company saw its value drop by more than 13%, the worst 1st-week performance of any initial public offering in a decade. This is reported by Bloomberg yesterday. Au contraire, Visa’s 2008 IPO resulted in a 1st-week bump of 45.4%, putting huge smiles on the faces of anyone who bought the company stocks on the first day of trading.
Facebook now facing a series of investigations and finding it difficult to keep employees’ and investors’ spirits high in the face of a dipping share price. On the other side, Facebook now has $18.4 billion in IPO proceeds to console it for suddenly being the most unpopular technology stock on the table. (Facebook got $16 billion for the initial IPO allotment, plus another $2.4 billion for the “greenshoe” option that its underwriters exercised.)
What would be rather more interesting now is that how Facebook’s stock turns after 30 days of trading….