THE PRICE OF Facebook shares dipped to a new low during trading today, falling below the $29 mark for the first time since their flotation on 18 May.
In a hotly-anticipated public stock debut, the shares began trading at $38 almost a fortnight ago.
The price held steady on day one, but fell by over 13 per cent with the first half-hour of the next day of trading.
Today, the share price fell as low as $28.78 (down almost a quarter since their launch).
A number of shareholders have filed lawsuits against Facebook and Morgan Stanley, which was the lead underwriter for the company’s IPO, claiming that the IPO documents left out key information about the company’s future growth forecasts. The AP reports that Morgan Stanley has declined to comment, while Facebook has described the lawsuits as being “without merit”.
Graph via Bloomberg.com
- Additional reporting by the AP