Initial public offerings in 2012 slumped to the lowest level since the financial crisis as signs of an economic slowdown and Facebook Inc.’s (FB) disappointing debut curbed demand and prompted companies to push back sales.
IPOs have raised $112 billion worldwide this year, the least since 2008, according to data compiled by Bloomberg. Initial sales in western Europe dropped to one-third of last year’s level, while concern about China’s economy helped cut proceeds in Asia by almost half. U.S. offerings raised $41 billion, little changed from last year, as Facebook’s IPO spurred a monthlong drought in U.S. deals.
With the possibility of $600 billion in U.S. spending cuts and tax increases that could cause another recession also weighing on the IPO market this year, the global backlog of potential offerings has now swelled to the largest year-end size since 2007, data compiled by Bloomberg and Ipreo show. That could set the stage for a rebound if lawmakers avert the so- called fiscal cliff, according to Credit Suisse Group AG and Barclays Plc, with companies from China Petrochemical Corp. to ING Groep NV poised to potentially move ahead with offerings.
The Facebook Insiders Who Dumped Stock Just Before It Crashed…
Timing isn’t everything in life, but it helps.
And now that Facebook’s stock has been cut in half since its May IPO, it’s time to compliment the clever folks who sold when everyone else was convinced that playing the Facebook IPO was pretty much a sure thing.
At the time, of course, these sellers appeared almost selfless: Demand for Facebook’s stock was so intense that it seemed the inside sellers would soon look like schmoes for selling too cheap.
Alas, if there’s one lesson that gets repeated endlessly on Wall Street it’s that anything that seems like a free lunch almost certainly isn’t.
And now, the Facebook insiders who sold on the IPO look, well, savvy.
When Mark Zuckerbergwas finally forced to takeFacebook public, he made it clear that as far as he was concerned, the IPO would not impact the way he ran the world’s largest social-networking company. He created a dual-class share structure with an eye toward being able to ignore Facebook’s new shareholders because his shares got the bulk of the voting power. He showed up to the company’s IPO road show wearing a hoodie.
But Zuckerberg’s ability to stay focused on Facebook’s products and ignore the stock market is already being tested this summer, Facebook’s first full season as a public company. Facebook’s stock on Tuesday hit another all-time low, as investors pushed it down by another 5% below $22. The stock is now down 42% from its IPO price of $38 in May. Bernstein Research analyst Carlos Kirjnersuggested that the stock would head to $20 before it could rebound.
Read More: Forbes
In 2003, fashion house Michael Kors Holdings Ltd. (KORS) was struggling.
“It was losing money and probably would have gone out of business had we not bought it,’’ said Chief Executive Officer John Idol in a speech at the University of Pennsylvania’s Wharton School in March. Idol, 53, a former CEO of Donna Karan International Inc., took over the company with partners that included Sportswear Holdings Ltd., a Hong Kong-based private equity firm.
It’s been pretty much champagne and roses for Michael Kors ever since, Bloomberg Markets magazine reports in its August issue. What was a $20 million-in-revenue business in 2004 is now a $1.3 billion behemoth. Net income for the 12 months ended on March 31 was $147 million. And Kors Holdings soared 144 percent in the 90 days after going public in December.
Investors showed little appetite for the IPO of steakhouse chain Del Frisco’s Restaurant Group Inc. (DFRG) on Friday, sending the shares down after the deal was scaled back.
The company’s stock opened at $12.75 a share on the Nasdaq, down 1.9% from its initial public offering price of $13. It sold 5.8 million shares—below the seven million originally planned—at a price below its expected range of $14 to $16.
Instead of the $112 million the company had hoped to raise, it ended up raising $75 million.
Source: Wall Street Journal
Facebook’s first earnings report as a public company had solid numbers, but in the end it landed with a thud — much like its rocky initial public offering two months ago.
Facebook reported stronger-than-expected revenue and a gain in users Thursday. But investors weren’t impressed and after a brief spike, its stock fell more than 11%, or $2.965, to $23.88 in after-hours trading. The decline means Facebook stock (FB) will most likely open at its lowest level since going public.
Source: USA Today
Nasdaq Filing $62 Million Facebook IPO Screw-Up Compensation Plan
Nasdaq OMX Group Inc (NDAQ) said on Friday it will file a $62 million compensation plan for firms that lost money in the bungled Facebook Inc (FB.O) initial public offering in May.
The fund is $22 million larger than the original fund proposed in June, Nasdaq said. All accommodations will be paid in cash, a departure from the prior plan in which Nasdaq would have partially compensated firms through trading credits or rebates.
The compensation plan will be filed with the Securities and Exchange Commission, Nasdaq said, adding that it expects all payouts to occur within six months.
“We deeply regret the problems encountered during the initial public offering of Facebook,” Nasdaq CEOsaid in a statement. “We failed to meet our own high standards based on our long history of providing outstanding technology to our members and exchange customers.”
Source: Yahoo Finance News
If you thought the Facebook IPO disaster was epic, think again.
Since the bankruptcy of Lehman Brothers in 2008, there have been a total of 179 IPOs that have raised over $500 million and some of them make the Facebook IPO look like a walk in the park.
Bloomberg Markets Magazine recently complied a list of the 20 worst performing stocks to hit since the financial crisis.
These 20 stocks saw the worst 90-day performance following their public markets debut.
Read more: BusinessInsider
The 20 Best Performing IPOs Since 2008
When stock markets collapsed in 2008, companies looking to raise capital through an initial public offering, had to delay their IPOs until buyers returned to the stock markets.
Since then, there have been a total of 179 IPOs that have raised over $500 million. Some, as we noticed during Facebook’s IPO, have been better than others.
Bloomberg Markets Magazine recently complied a list of the 20 hottest performing stocks to hit the markets since the collapse of Lehman.
These 20 stocks saw the greatest 90-day performance following their public markets debut.
Read More: BusinessInsider