Jack Dorsey’s venture Square is having a strong IPO by all accounts. But what of the companies that have not been so lucky in their stock offerings? CBR rounds up some of the big disasters.
1. Facebook
Facebook‘s botched IPO was something of a milestone for the industry. The social networking site had to convince investors that it could translate its huge user-base into real profits.
However, with the initial offer price set at $38.23 on launch on 18 May 2012, it plummeted quickly, falling 52.76 percent before hitting its low point in August of $18.08.
Since then, however, the share price has grown steadily and is now at $107.6.
2. Groupon
Groupon, the eCommerce site, IPO’d on 4 November 2011 with its shares priced at $26.11.
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Over the next year it dropped nearly 90 percent, falling to a low of $2.76 per share.
After a rise throughout 2013 to $9.66, the price fell again and four years after its initial IPO is lounging around the $2.5 mark.
3. Vonage
Founded in 2001, the internet telephony provider launched its IPO five years later, setting an initial price of $13.02.
The drop was immediate – the stock closed 12.7 percent lower that day. Between its launch and July 2009 the company lost 97 percent of its value, reaching a low point of $0.34.
Since then its share price has risen again to $6.51, around 50 percent of the original IPO price.
4. A10 Networks
IPOing back in March 2014, A10 Networks set an initial price of $16.21. Within a week it dropped nearly 10 percent.
By October, the price had fallen 74.52 percent, reaching a low of $4.01.
It floundered around this price for the next six months or so. It has now risen to $7.70, which is still 52.5 percent lower than the initial selling price.
5. Zynga
Zynga differs from the other companies on this list in that it saw an initial rise after its IPO at $9.50 in December 2011, soaring 54.63 percent over the next three months to reach $14.69.
This was not to last. The share price plummeted to reach $2.12 in November 2012.
The share price is now at $2.55, falling 73.16 percent since its original IPO.
