Facebook IPO: It's Complicated
Was the Facebook IPO a success or a failure?
- There was a lot of hype leading up to the IPO May 18, with some on Twitter and Facebook saying they thought shares could nearly double in value. The website facebookipodayclosingprice.com … recorded some of the expectations and found that many on social media predicted the closing share price would be $54.
- The IPO price was $38 per share.
- When the market closed May 18, the price of a Facebook share was $38.23.
- So those who bought Facebook shares on the first day of trading didn't see much of a return. But some on Twitter emphasized that first-day shareholder profit wasn't necessarily the goal of the IPO. Facebook raised about $16 billion through the offering, and many employees with stock are now millionaires or billionaires.
Investment firms who already had stakes in Facebook also made money, including the Elevation Partners investment group. The group, whose investment team includes U2 lead singer Bono, owns 2.3 percent of Facebook.
- Facebook also set records for volume, an indicator of interest in the stock.
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