Excerpt from a stark IPO reality check
Facebook “will bring a potentially unprecedented amount of attention to the I.P.O. market,” said Peter Falvey, a managing director at Morgan Keegan, an investment bank. But, he said, “its I.P.O. in all likelihood won’t have a tremendous impact on the ability of other companies to execute offerings.”
The problem is that investors are still recovering from 2011. About 70 percent of the companies that went public in 2011 are trading below their offering prices, according to Kathleen Smith, a principal at Renaissance Capital.