Facebook IPO creates history in the stock market

Facebook IPO creates history in the stock market

San Francisco : CA : USA | May 18, 2012 at 10:46 AM PDT
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Investors, businessmen, employees and analysts had their eyes glued on Facebook’s IPO which is also being categorized as the most successful technology IPO in history. The IPO was rolled out on Thursday morning with a positive opening at $42.05, well above the pre-set price of $38.

Speculators had cautioned that IPO prices would definitely vary several times and as expected the prices dropped a couple of times to $38. A little later during the day by 10 a.m., it was back up to above $41.

Quite interestingly the IPO was delayed for half an hour before getting rolled out. According to the NasdaqOMX Group, they shared a disclaimer about "experiencing a delay" in opening shares of Facebook and this news was shared by Bloomberg. Investors are free to trade IPO shares and help build company’s valuation even more.

According to Barron's, trading for Facebook shares could end on higher price and there are 77 percent chances that the stock would close at $45.

Owing to Facebook’s successful IPO launch other social media websites started performing poorly on the stock market. This includes Zynga whose stock fell more than 13 percent, reaching an all-time low at $7.17. Groupon’s prices also fell about 6 percent and LinkedIn was down more than 1 percent.

The historic bell rang outside at the company's Menlo Park headquarters at 6:30 a.m by Facebook’s cofounder and CEO Mark Zuckerberg. This was indeed another very special moment for him. Employees were very excited to see this big moment. They had literally spent the night before at work, coding in one of the company's regular "hackathons." Company’s Chief Operating Officer Sheryl Sandberg was also in attendance along with many other senior officials.

As soon as Zuckerberg pushed the button to ring the bell, his Facebook page gained a status update that read "Mark listed FB on Nasdaq." In an interesting turn of events the company later revealed that a group of Facebook engineers "hacked" the Nasdaq bell mechanism so they could automatically post an update via a mobile phone connection. The update tagged Sandberg and four other Facebook executives when the IPO bell rang.

Facebook completed its initial public offering Thursday, and made a record by selling 421 million shares, which raked in $16 billion at a record valuation for a U.S. company at IPO time.

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A Facebook employee enters the company's headquarters in Menlo Park before the company's IPO launch
A Facebook employee enters the company's headquarters in Menlo Park before the company's IPO launch
harry68 is based in San Francisco, California, United States of America, and is a Reporter on Allvoices.
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