The Sydney Morning Herald reported that during the first day of trading Facebook shares plunged 11 per cent due to Nasdaq bungling the initial public offering.
Nasdaq suffered from being unable to clearly communicate electronically with brokerages who handle individual investor’s orders. The problem meant that investors could not confirm if their orders had been processed and has led to Nasdaq announcing there will be changes to their IPO (Initial Public Offering) procedures.
For Facebook, however, these proposed changes will come too late. Facebook shares slumped by $US4.20 to $US34.03 on the Nasdaq. In comparison to Friday’s intraday high of $US45 a share, that is a decline of almost 25 per cent. Facebook’s share price drop cleared more than $US11 billion from the company’s market capitalisation.
As Music Feeds previously reported, the first day of trading for Facebook was considered a disappointment after only finishing 23 cents (0.61%) higher than their opening price of $38.