The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Facebook IPO: a lesson in the art of saying 'no'

As Facebook fights back – at least in terms of stalling its sagging share price – controversy continues to rage as to who is to blame for the inept IPO. On June 15, a month after the IPO date, Facebook shares languished 20% below their offering price of $38. Many are fingering the stock exchange, Nasdaq, as culprit in chief. For all that Nasdaq chief Bob Greifeld has come out since with his own mea culpa, saying he and his colleagues "owe the industry an apology", I am not so sure.

Sure, the fact that trading started half an hour late and that orders could not be confirmed for another two hours was problematic.

But was this enough to poison the whole offering? After all, the deal closed at the end of the first day around the $38 issue price. Facebook shares then plummeted over the next few days as investors started to question the ridiculously high valuation – 75 times estimated 2012 earnings – and the ability of the company to grow revenues from its vast user base.

Often, when a deal has a shaky start, it fails to flourish in the next few weeks.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree