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Buyer beware! WSJ: Facebook is on track to be one of the worst large U.S. IPO starts in the past 5 years.


From WSJ:

Facebook’s continued fall has put the social network on pace to be one of the worst large U.S. IPO starts in the past five years.

The social network’s much ballyhooed offering was in the midst of its second-straight day of declines, dropping as low as $30.98 today. That would have been an 18.5% drop from its IPO of $38.

The stock has recovered somewhat, recently down 3% to $33. That also marks a 13% decline from its IPO price, equal to the worst three-day start for an IPO that raised over $1 billion since 2007, according to Dealogic.

There have been 23 U.S. IPOs over that size since 2007.  Through the first three sessions, only asset-manager Och-Ziff Capital performed as poorly, losing 13% as well, according  to Dealogic. In fact, only seven of the deals ended their first three sessions in the red, the data provider says.

Facebook would have to fall further to be worst first-week performer, given Och-Ziff ended its inaugural week down 24%. Overall the 23 IPOs averaged a 15.6% gain during their first week, according to Dealogic, meaning Facebook would have to hit $44 by Thursday’s close to catch them.

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