Facebook IPO (2012)
Facebook went public at $38 per share, valuing the company at $104 billion. Trading on Nasdaq opened 30 minutes late because of system failures, and the stock closed flat after underwriters intervened to defend the price. Within months it had lost half its value.
Class-action suits over disclosure of mobile-ad weakness flooded the courts. Morgan Stanley paid a $5 million fine for its role.
Facebook (later Meta) recovered to trade above $300, but the IPO became the standard cautionary tale for mega-cap tech listings. Underwriters now build in more conservative allocations and price discovery.
Facebook is the warning label for OpenAI's bankers: a generational tech IPO can still misprice on day one if late-stage private rounds set a number the public market won't pay.
