Being a huge soccer fan, when we talked in class about Facebook’s IPO and its ill-fated debut in the NASDAQ stock exchange in May 2012 I couldn’t help but remember when my favorite English team, none other than Manchester United, made its IPO debut on the New York stock exchange the same year.
The fear that as Facebook’s IPO was disappointing the same might happen to Manchester United IPO, since both are enormous in size. One day before the soccer club’s IPO the share price fell to $14 from $16-$20 that initially was set.The situation was exactly opposite from Facebook’s where the share price rose to $38 just before going public.
From the mistakes that might have been made in the past, new companies when deciding to go public, are taking cautious action by preferring to gain maybe less like Manchester United, rather than starting off big and losing later, like Facebook. During the lecture in Finance we also talked about Twitter IPO where again based on the mistake Facebook did (went public after 8 years) managed to have a successful IPO.
Sources:
http://www.theguardian.com/football/2012/aug/10/manchester-united-ipo-share-prices
photo source:
http://www.smscs.com/photo/manchester_united_logo_wallpaper/15.html#.UobGw-LiH3E