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Thu May 31, 2012, 05:06 PM

Facebook Fiasco Coupled With European Crunch Freezes IPO Plans


(Bloomberg) Facebook Inc. (FB) led U.S. initial public offerings to their worst monthly performance since Lehman Brothers Holdings Inc. collapsed, as Europe’s debt crisis scuttled IPO plans from New York to Hong Kong.

The Bloomberg IPO Index (BIPO), which tracks U.S. equities in the first year after their IPOs, sank 15 percent last month, with Facebook posting the worst one-week performance among the 30 largest U.S. IPOs since 2011. The IPO index’s decline is in line with the drop in October 2008, the month after Lehman’s bankruptcy triggered the worst financial crisis since the Great Depression.

Kayak Software Corp. and Russian social-networking company VKontakte shelved listings this week, while Graff Diamonds (1306) Corp. delayed a Hong Kong sale and the Formula One auto-racing series said its Singapore IPO may not occur until later this year. Facebook’s 22 percent slump since going public has shaken investors already reeling from tumbling equity markets and the slumping European economy, said Jeffrey Sica of Sica Wealth Management LLC.

“We’ve reached a breaking point where sentiment is so negative and scrutiny is so high that companies don’t want to go public and investors aren’t prepared to look at them,” said Sica, who oversees more than $1 billion as chief investment officer of the Morristown, New Jersey-based firm. “You’re talking about long-standing damage to the psyche of companies wanting to go public and investors.” ...............(more)

The complete piece is at: http://www.bloomberg.com/news/2012-05-31/facebook-fiasco-coupled-with-european-crunch-freezes-ipo-plans.html



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Reply Facebook Fiasco Coupled With European Crunch Freezes IPO Plans (Original post)
marmar May 2012 OP
Fresh_Start May 2012 #1
monmouth May 2012 #2

Response to marmar (Original post)

Thu May 31, 2012, 05:52 PM

1. Good that scrutiny is high.

Because the issues around the Facebook IPO justify increasing scrutiny.

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Response to marmar (Original post)

Thu May 31, 2012, 06:02 PM

2. Facebook will most likely be "Junk" by the end of summer IMO...n/t

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