The social network, which raised $16bn in its initial public offering, failed to see a first-day “pop” in shares, amid a technical glitch at Nasdaq that delayed trading by half an hour.
After opening up 10.6 per cent on Friday the stock quickly fell back to its offer price, and the IPO’s underwriters stepped in to keep the price from falling further throughout the day. The shares closed up 0.6 per cent at $38.23.
On Monday, the stock fell as much as 4.1 per cent to $36.65 before the official start of trading in New York.
Nasdaq chief Bob Greifeld on Sunday said he was “embarrassed” by the problems with the IPO. A glitch in its system allowed cancellations of trades to interrupt attempts to complete the auction and calculate the opening price, Nasdaq said, forcing the 30-minute delay.
The exchange said it would change its trading procedures for IPOs so that the problem would not recur. The Securities and Exchange Commission has said it will “review” the incident.
Overall, US futures on all three major US exchanges were higher on Monday morning.
Facebook’s Wall Street debut on Friday defied predictions of a sharp increase in first-day trading.
Analysts at Morningstar said the company’s record $104bn valuation, set against the backdrop of a weak stock market and setbacks for its advertising business , may account for the lacklustre debut.
Several other highly anticipated technology IPOs rose much higher on their opening days, including 109 per cent and 31 per cent gains, respectively, for shareholders at LinkedIn and Groupon.
Some will see Friday’s modest rise as a coup for Facebook, leaving the company more money at the expense of day-traders and justifying its aggressive pricing at the very top of its indicative range.
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