Facebook (FB) IPO Opens, But Not Without a Hitch
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After massive hype, the Facebook (Nasdaq: FB) IPO debuted Friday, but not without some confusion and shock.
Shortly after opening at $42.05, shares broke below $40 and then shockingly tested the $38 syndicate price. There it found support as underwriters and other investors sought to defend the IPO price. By the close though shares gave back nearly all of the gains, ending the day at $38.23.
There was also an initial scare, as Nasdaq, originally expected to open the stock at 11AM ET, didn't get the stock open until 11:30AM ET. Nasdaq also had an issue delivering trade execution messages from the IPO cross.
Issues at Nasdaq could have contributed to the sharp drop in the stock after the open as traders weren't getting order confirmations and pulled back additional orders.
There were 421,233,615 shares offered in the deal, which was recently raised from 337,415,352 shares. With about 2.7 billion shares outstanding after the deal, the valuation at current levels is about $107 billion.
The first day volume was 580,512,812 shares, or about 138% the float.
Morgan Stanley (NYSE: MS), JPMorgan (NYSE: JPM) and Goldman (NYSE: GS) led the deal.
Shortly after opening at $42.05, shares broke below $40 and then shockingly tested the $38 syndicate price. There it found support as underwriters and other investors sought to defend the IPO price. By the close though shares gave back nearly all of the gains, ending the day at $38.23.
There was also an initial scare, as Nasdaq, originally expected to open the stock at 11AM ET, didn't get the stock open until 11:30AM ET. Nasdaq also had an issue delivering trade execution messages from the IPO cross.
Issues at Nasdaq could have contributed to the sharp drop in the stock after the open as traders weren't getting order confirmations and pulled back additional orders.
There were 421,233,615 shares offered in the deal, which was recently raised from 337,415,352 shares. With about 2.7 billion shares outstanding after the deal, the valuation at current levels is about $107 billion.
The first day volume was 580,512,812 shares, or about 138% the float.
Morgan Stanley (NYSE: MS), JPMorgan (NYSE: JPM) and Goldman (NYSE: GS) led the deal.
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