Facebook shares slide to new low of US$30

29 May 2012

A day after Bloomberg said Facebook’s drop of 13.1pc was the worst IPO in a decade, shares in the social network slid to a new low today, at just above US$30.

Facebook shares are now down more than 20pc from their IPO price of $38 on 18 May.

Reuters reported that Facebook’s stock briefly skirted a record trough of US$30.03 and was down 5.6pc at US$30.12 at mid-morning in trading in the US.

It has been a bumpy couple of weeks for Facebook. The company is facing class action suits from investors over the decision to issue an additional 25m shares just before the IPO began, the raising of the IPO price to US$38 as well as revelations that select investors were told about lower earnings while smaller investors were told there might be a fall in earnings.