Facebook Stocks Fall Below Offering Price
May 21 in the first minutes of Nasdaq session Facebook Stocks lost more than 8% and are estimated at 35 dollars by investors. For comparison during the first share placing held on May 18 the papers were put for sale at 38 dollars.
On the first trading day they had gained only 23 cents, i.e. less than a percent. During May 18 session the price for a Facebook stock was elevating to 43 dollars and did not fall below 38 dollars even once.
Facebook IPO has become the major one in the Internet companies history: the biggest social net in the world managed to raise about 16 billion dollars of investors funds. What is more, the whole company’s price was evaluated above 100 billion dollars, which is to say it is more expensive than McDonald's or Citigroup.
It is noteworthy that papers of other Internet companies coming to the stock exchange arena before Facebook were rising in the first trading period, but a few weeks later they were scaling down below offering price. In particular, such case was observed in 2011 with Groupon discount service and Yandex search engine.
Usually, at the beginning of trades amid an unfavorable climate the banks-underwriters IPO keep the share price above the set level. That means that a price drop of Facebook shares could be much more substantial.