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Facebook launches the biggest technology IPO in history; flops miserably within days
Facebook, the world's largest social network with more than one billion members, filed to trade publicly earlier this year. With an initial public offering (IPO) price of $38 a share, it would be one of the largest IPOs in technology history. The company's peak market cap stood at more than $104 billion and was one of the most anticipated events of 2012.
It was all smooth sailing until the company actually launched. Trading was delayed by half an hour due to technical problems on the Nasdaq -- traders didn't know if their orders had gone through or not -- but the company's stock shot up to $45 a share. Within a few days, the company tumbled below the $30 a share mark, and 70 days later, it fell below the $20 a share mark. Within only a couple of months, Facebook's shares had halved.
Morgan Stanley, the primary IPO underwriter, ended up with a $5 million fine over the botched initial public offering, but considering its $32.4 billion in revenue during 2011, it was barely a slap on the wrist.