Facebook shares surge 11pc after lock-up ends

14 Nov 2012

Facebook shares jumped by as much as 11.2pc today after the largest block of shares held by investors became eligible for sale for the first time since the social network’s IPO on 18 May.

A large block of 804m shares, which effectively doubles the number of shares available, became eligible for sale today.

At the time of writing, after heavy morning trading on the Nasdaq Facebook shares were up 8.21pc to US$21.49.

Facebook’s value has fallen nearly 50pc since the IPO. The company has also been dogged by insider trading allegations that have seen smaller shareholder groups take legal action against the company.

In October, a restriction on trading more than 200m shares was lifted, making instant millionaires out of long-serving Facebook staffers.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years