Poll: Facebook's IPO Was Priced Incorrectly
NEW YORK (TheStreet) -- Facebook's (FB) IPO has come and gone, and investors believe the company, and its bankers, made a huge error in its initial public offering last week. TheStreet asked readers whether they believed Facebook's IPO was priced to perfection, or whether the company's investment bankers miscalculated demand.
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By an overwhelming margin, respondents said that due to the fact there was no after-market pop, investment bankers had misread the market's enthusiasm for the offering. Of those who voted, 71.24% said, "No. There was no after-market pop and the underwriters miscalculated demand."
Just 19.52% of respondents believed that the underwriters did their job, responding, "Yes. It's the underwriters' job to raise as much money for the company and its investors as possible."
Only a small percentage of those who voted, 9.22%, were not sure if the IPO was priced to perfection.
Facebook's underwriters, led by Morgan Stanley (MS), JPMorgan (JPM) and Goldman Sachs (GS), priced the IPO at $38 a share, raising $16 billion for the company and its investors. Shares of Facebook are sharply lower in Tuesday trading, off 4.35% to $32.55. Interested in more on Facebook? See TheStreet Ratings' report card for this stock. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_BullSelect the service that is right for you!
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