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The world's largest social network, with more than 1 billion active monthly users, filed its initial public offering in May for $38 a share, valuing the firm at more than $100 billion. This was the largest valuation of any newly listed public company to date. But things turned badly wrong as soon as chief executive Mark Zuckerberg hit the magic "let's go public" button at the firm's headquarters in Palo Alto.
The Nasdaq reported technical difficulties at market opening on the day Facebook went public and delayed trading by half an hour. While trading shot up to $48 a share, the closing price was only $0.23 above the IPO price. Many considered this a massive disappointment. Since then, Facebook's shares have dropped significantly to a low of $17 a share only three months after it first went public.
More than 40 lawsuits have been filed in the wake of the IPO, and the IPO is also under investigation by the U.S. Securities and Exchange Commission. The whole public offering debacle was a mess from start to finish, and frankly overhyped by the entire industry.