Facebook IPO

Before Facebook offering, the U.S stock markets were experiencing a growth to the month of may 2012. This was indicated by the rising of S&P by 21 percent from its lows in November 2011.  Initially, the investors had seen the market falling due to deteriorating political gridlock and economic outlook in United States and Europe as seen by the declining of S&P Index in first half of May by 5 percent. Moreover, the NASDAQ 100 Index seemed has stalled in the same month following a rise to 17 percent from the mid-2011 to middle of May 2012.  The market had strong investor demand before the Facebook’s   IPO, which was indicated by the gross proceeds obtained by the Groupon and LinkedIn. Linked had racked in $353 million and valued at $4.3billion with its shares rising by 109 % on the immediate day after trading and Groupon was able to raise $700 million. This indicated that the market was recovering from the financial crises that had ill-fated the major global economies especially due to European debt crises.

The recent performance of IPOs has actually been on the upside , especially since the year 2013 which was rated the best since the year 2000. The IPO’s good performance for that year was due to lower rates of interests, a stock market that was rising and risk friendly investors. This performance trend continued to the year 2014, whose performance was even better than 2013. However, the IPO market for the year 2015 declined to a tally of 152 which was lower than that in 2014.  The performance in 2015 was , nevertheless , in line with yearly average of 157 IPOs which was observed for over 10 years, preceding 2014.

Facebook, INC: the Initial Public Offering. IVEY Publishing.