Well, if an IPO's goal is to raise the most money possible for the company, than David Ebersman's push for more shares and higher starting price can be considered a huge success (for the company, not for investors).... " which ended up at $38 after the company had originally planned a price range of $29 to $34." Had they started at $29 the stock would still be down by 35% or so....
What a bullshit article. The CFO's job is to maximize value for his company, and that's exactly what he did. If anything, the IPO price was too low, since the private market action was in the mid-$40s just a week ahead of launch. Anybody buying this stock on open are 100% responsible for their choice - the only place they should be pointing fingers is at the nearest mirror.
Why is this a debacle? This is a homerun for FB! They managed to issue equity shares at what? 40 bucks per share and now it's down to 18-ish. That sounds like brilliance to me. The company sold shares worth 18 bucks for 40 bucks. Companies want to issue shares as high as possible to maximize inflow of capital. Investment banks want to issue as low as possible so they don't get stuck with inventory they can't unload. FB with the stunning victory!
face plant has no value and what they profess to do is questionable. the next insider lockup period expires in november and big blocks of paper will hit the fan as the rush to get thru the exit accelerates. the entire business model is pure smoke and a 50% half price sale is just a starting point. black friday is right around the corner.
I would have thought having "Mark Cuban" in large letters across the top of the page would be a hint that it's not.