On Friday, people, investors, analysts and experts were prepared to see the biggest Initial Public Offering of Facebook. However, the IPO, which was expected to be historic, wasn’t so historic after all. The Initial Public Offering of Facebook was the talk of the week and as the company went public on Friday, it didn’t really impress.
As Facebook went public, the extremely high valuation of the company mixed with trading mishaps left the company’s stock losing vigor close to its offering price when the market was closing.
The company’s shares started trading late on Friday morning. As the trading began, stocks opened 11 percent higher than their offering share price of $38 per share. Once climbing to $45 per share, the company’s shares dropped rapidly, closing at $38.23.
Facebook’s Initial Public Offering was the 3rd biggest IPO in the history of United States, which left the company, which started just 8 years back, with a valuation of $104 billion.
The historic debut of Facebook wasn’t as historic after all as analysts were expecting a 10-15 percent rise in the company’s share value. However, shares collapsed after hitting their highest value during trade, which was $45 per share. Even though Facebook didn’t impress a lot of people, its business will not get affected. The company has more than $900 million users and it is already mixing things up to expand its territory and reach.
On the other hand, many analysts are expecting Facebook’s stock to stay under pressure in the coming week. Apart from Facebook, NASDAQ also disappointed on Friday as the company opened a little late since it suffered because of a large number of orders coming in. There were also reported delays in taking orders and confirming them. On Friday, the SEC said it is looking into the matter.