In the five days that followed Facebook’s hotly anticipated initial public offering (IPO) on the New York Stock Exchange in May, the stock shed 13.1 percent of its value, making the social network the biggest IPO flop in the last decade.
However, Facebook is by no means alone when it comes to disappointing stock market flotations.
Click here to see the most disappointing IPOs in US corporate history.
MF Global, the futures and options business of Man Group, was the second biggest IPO of 2007 on the New York Stock Exchange, raising US$2.9bn. But shares slumped to US$30 from an expected price of US$36-$39 in its first day of trading and continued to decline, falling 10.4 percent during its first five days.
Analysts attributed the decline to other IPOs of financial-fund related companies such as Blackstone Group and Fortress Investment Group. The firm filed for Chapter 11 bankruptcy in October 2011.
Another major flop was Blackstone Group. Shares in the firm soared more than 13 percent on its first day of public trading back in June 2007.
The New York-based global asset manager’s market value reached around US$40bn after what was then the biggest US IPO in five years. But the celebrations did not last long; shares declined 4.2 percent in the first five days of trading.
Click here to see the most disappointing IPOs in US corporate history.
At the other end of the spectrum is US card firm Visa. Shares in Visa surged 28 percent on their first day of trading in March 2008 and finished the first five days up nearly 50 percent to 45.4 percent.
The San Francisco credit and debit card processor sold 406m shares in the offering, raising just under US$18bn, despite the sale taking place just days after the collapse of a major investment bank with credit market turmoil at its worst.
Click here to see the most disappointing IPOs in US corporate history.
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