Facebook (FB) IPO Opens, But Not Without a Hitch
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. Currently the stock is at $40.30. (Now at 38.02 as of time of posting)
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 executions 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 confirmation 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.
Morgan Stanley (NYSE: MS), JPMorgan (NYSE: JPM) and Goldman (NYSE: GS) led the deal.
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