Investors and regulators raised new concerns about the $16 billion IPO as Facebook shares fell a second straight day, extending losses to 18 percent below the $38 offer price.
Morgan Stanley, the lead underwriter, released a statement defending its handling of the May 17 IPO after the Massachusetts security division yesterday subpoenaed the investment bank over its communications with clients. The U.S. Securities and Exchange Commission and the brokerage industry’s watchdog both said they may review the offering, and a buyer of Facebook stock sued Nasdaq OMX Group Inc. over glitches in opening-day trading.
The anticipation that preceded history’s biggest technology IPO has been replaced by investor ire, including about whether the offer was priced too high.
Read more at San Francisco Chronicle.