IPO

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The all-computer run NASDAQ could be to blame for a lack of a Facebook stock pop Friday, when the social network started its first day of trading. Orders flooded in for the stock, but overwhelmed computers and glitches slowed trading …

Hoo boy, anything tech-related that happened over this past week was dwarfed into oblivion by Facebook’s IPO.

Many of us were expecting a glorious event with massive profits for early shareholders, but the day’s events ended in disappointment.

The stock …

Before Friday, almost every Silicon Valley insider was saying Facebook stock would finish its first day between $50 and $60 per share.

In reality, the share price at the closing bell was a pathetic $38.37.

How were these masters of …

So, Facebook is now public, and it got off to the most unimaginable and inauspicious start, losing $4 between the NASDAQ’s opening and closing bells.

But don’t go jumping out any windows just yet.

There’s no question that the IPO …

In addition to being one of the largest initial public offerings ever, Facebook’s IPO drew so much interest that the system couldn’t keep up with demand.

Facebook expected to make its public debut at 8 a.m. PT this morning, but …

Leave it up to Next Media Animation, the Taiwanese firm known for its wacky news videos, to create the only Facebook IPO wrap-up that’s actually worth watching.

Sure, this Facebook wrap-up features a dead-eyed Zuckerberg riding the Wall Street bull …

Facebook released the amount of shares allocated to each of its underwriters today, following its less-than-stellar IPO day.

The company went public on the Nasdaq to an EKG-like performance, ending in a .38 cent gain today. The update came in …

Buying its way into social commerce, Facebook has acquired mobile gifting app Karma for an undisclosed sum.

“Weare thrilled to announce that Karma has been acquired by Facebook. The service that Karma provides will continue to operate in full force,” …

At the end of Facebook’s first day of public trading, its shares were selling for around 9.5 percent less than their opening price.

By the time the closing bell rang, the stock ticker symbol FB sat at $38.37, according to …

It’s official: Facebook is a public company.

With all the hype around Facebook’s big day and the obsession with who’s-getting-rich numbers, its easy to forget to that we’ve had a front row view of Facebook’s ascendance to $38 a share, …

Editor’s Pick

“A million dollars isn’t cool. You know what’s cool? A billion dollars,” Sean Parker says in the famous line from “The Social Network.”

Trite though the line may be, Facebook, valued at $104 billion, is in the process of minting …

While seemingly every other popular tech startup is aching to go public, Evernote is playing it slow and steady.

Evernote CEO Phil Libin said he hoped to make the company “IPO-ready” by the end of 2013 while speaking to a …

Facebook began trading on the public markets for the first time today, and at the company’s headquarters in Menlo Park, Calif., excitement levels were high. Here’s a look inside.

While most of the tech industry is watching Facebook’s historic IPO day unfold, data startup Visual.ly is taking advantage of the situation by showing off the capabilities of its infographics service.

Today Visual.ly launched a new interactive infographic that uses …

Just hours before Facebook opened on the public market today, a group of Facebook users sued the company in a $15 billion class-action lawsuit over privacy, according to Bloomberg.

Facebook has attracted scrutiny for quite some time when it comes …

Groupon is being investigated by the Financial Industry Regulatory Authority after the company’s stock made a sharp, upward turn Monday, before earnings beating expectations were delivered at the close of business that same day.

Finra, which watches for oddities within …

Facebook is looking mighty fine today — especially if you’re Instagram, the photo-sharing company that sold its hit mobile application to the social network one month ago for a cool $1 billion in cash and stock.

But wait. Did we …

You know what they say about a rising tide lifting all the boats. Well, the same goes for a waning tide, apparently.

As Facebook stock dips lower and lower in early trading, at times as low as its $38 initial …

Facebook shares are trading publicly for the first time ever today, and so far, we’re seeing small fluctuations in share price.

As of 11:30 Eastern time, trading had commenced at $42. Throughout the mornings, shares traded between $40 and $41. …

May 19 (Bloomberg) — Morgan Stanley, the lead underwriter in Facebook Inc.’s initial public offering, stands to take a hit from a stock market debut that stoked disappointment among investors in the largest social network.

The bank stepped in to prop up the stock from dipping below its $38 IPO price yesterday, said people with knowledge of the matter, who asked not to be identified because the purchases were private. Morgan Stanley, based in New York, was the only underwriter among Facebook’s 33 banks with the responsibility to support the shares, the people said.

Underwriters “are acting like the cavalry to keep this thing going up,” Eric Jackson, founder of Ironfire Capital LLC, said in an interview on Bloomberg Television’s “Street Smart.” “They’re not going to be here a week from now, two weeks from now, a few months from now. It does suggest that there are going to be some rocky waters ahead.”

Days before the sale, Facebook and Morgan Stanley decided to bump the offering price range to one with $36 as a midpoint to persuade the company’s backers to sell more of their stock, one of the people said. Facebook and the bankers knew pre-IPO investors were willing to sell more, though not at the initial midpoint range of $31.50 a share, the person said. Goldman Sachs Group Inc. and Accel Partners were among backers that decided to sell additional shares in the IPO.

The IPO price, at the top of the increased range, prevented a first-day pop in the shares, which advanced 23 cents to $38.23 yesterday.

“It does indicate that investors are conscious of the risk, that the revenue model is still unproven, that operating costs are high and rising,” said Brian Wieser, an analyst at Pivotal Research Group LLC with a $30 price target on Facebook. “Those factors are weighing on the investors. The stock is greatly overvalued.”

Crossed Quotes

The debut was also marred by glitches at the Nasdaq Stock Market, where initial pricing of the first transaction was pushed back by a half-hour amid delays in trade confirmations, crossed quotes and signs that orders were mishandled.

Facebook executives and bankers met on May 17 to discuss the final IPO price, people familiar with the matter said. Among the underwriters, Morgan Stanley was the main bank handling pricing, the people said. Some co-managers of the offering advised Morgan Stanley against expanding the sale and price range because their clients’ demand didn’t support the move, two people said.

Pen Pendleton, a spokesman for Morgan Stanley, declined to comment. Jonathan Thaw, a spokesman for Menlo Park-based Facebook, declined to comment.

Market Value

Facebook raised $16 billion in the IPO selling 421.2 million shares on May 17, valuing the company at $104.2 billion. The offering price gave Facebook a market capitalization almost double the $60 billion United Parcel Service Inc., previously the biggest company to complete an IPO, was valued at when it went public in 1999, according to data compiled by Bloomberg and Dealogic.

That means Facebook bankers will split about $176 million for managing the social-networking company’s initial public offering after accepting a lower-than-average fee of about 1.1 percent. The biggest share of IPO fees typically goes to the lead underwriter on the deal, though the cost of propping up the stock in the first day of trading could potentially outweigh any underwriting fees generated from the sale.

Key Bankers

Dan Simkowitz, Morgan Stanley’s chairman of global capital markets, was one of the main bankers on the offering, said a person familiar with the matter. He also helped run General Motors Co.’s 2010 IPO that raised $18.1 billion.

Michael Grimes, global co-head of technology investment banking at Morgan Stanley, also played a key role. He introduced Facebook executives to investors at a lunch meeting last week in Palo Alto, California, part of a road show to pitch the deal to prospective buyers. Grimes became acquainted with Facebook Chief Operating Officer Sheryl Sandberg when he handled the IPO for Google Inc., her former employer. He meets regularly with investors in search of the next promising startup and is an avid consumer of his clients’ products.

Sandberg recused herself from picking bankers for Facebook’s IPO because she had relationships with several banks from her previous job at Google, one person said.

Facebook Chief Financial Officer David Ebersman was the point person on the deal, starting with the selection of the lead bankers, one person said. Sandberg and Chief Executive Officer Mark Zuckerberg were involved in major decisions throughout the process, the person said.

The performance may hurt the entire IPO market in the short term, people said. Some technology companies considering initial offerings are readjusting timing and valuations based on the day’s events, one of the people said.

“I know a bubble when I see one,” Bill Gross, Pacific Investment Management Co.’s co-chief investment officer, wrote about Facebook in a posting on Twitter.

–With assistance from Ari Levy, Brian Womack and Douglas Macmillan in San Francisco, and Sarah Frier and Michael J. Moore in New York. Editors: Jennifer Sondag, Tom Giles

 

To contact the reporters on this story: Serena Saitto in New York at ssaitto@bloomberg.net; Jeffrey McCracken in New York at jmccracken3@bloomberg.net

 

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

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