Facebook shares dip below IPO price
- Published: 21 May 2012 at 22.07
- Online news:
Facebook shares plunged almost 12 percent below their IPO price in early trade Monday, as early buyers sought to cut losses during the stock's first full day of trade.
An hour and a half after the market opened, the shares were changing hands at $33.67, a 11.9 percent discount from the $38 initial public offering price, which made Facebook the second largest US IPO of all time.
"I think that the underwriters convinced Facebook to offer too much stock,'' said analyst Michael Pachter of Wedbush Securities.
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