Russian social network delays IPO after Facebook crash
May 30th, 2012 - 11:37 am ICT by IANS
Moscow, May 30 (IANS/RIA Novosti) VKontakte, one of Russia’s most-popular social networks, has postponed its initial public offering indefinitely after the flotation of the world’s largest social network Facebook took a hammering.
“The Facebook IPO has destroyed the faith of many private investors so VK’s IPO is postponed for an indefinite term,” VKontakte founder Pavel Durov wrote in his Twitter page.
Durov holds 12 percent of VKontakte and has a right to vote using the shares of Russia’s Mail.ru Group, VK’s largest shareholder with a 39.99 percent stake.
Facebook floated on the NASDAQ May 18. After listing at $38 per share in a $16 billion public offering which valued the whole company at $104 billion, Facebook has taken a hammering in the markets in the days since.
Allegations about the information available to investors have prompted a US federal probe into whether specific investors received privileged information ahead of the IPO that should have been shared more widely.
A suit by shareholders claims JPMorgan and Goldman Sachs analysts alerted clients of Facebook’s lower growth forecasts in the days before its IPO, New York magazine said.
–IANS/RIA Novosti
pm
- Russian social network not to close opposition accounts - Dec 09, 2011
- Facebook files for $5 bn IPO - Feb 02, 2012
- Russian president gains 1 mn online fans in 24 hours - Nov 11, 2011
- Medvedev has 1 mn Twitter followers - Feb 19, 2012
- Court bans clip of Russians drinking - Apr 17, 2012
- Russian gold producer eyes London IPO - Jan 19, 2012
- Goldman Sachs chosen adviser for Russian airport's sale - Dec 20, 2011
- Amnesty urges Russia to respect right to protest - Dec 09, 2011
- Facebook set to raise $16 bn with largest tech IPO - May 18, 2012
- Russians reach late for work after time switch - Oct 31, 2011
- 'Media magnifying teenage suicides in Russia' - Feb 21, 2012
- Russians most active in online social networking - Oct 22, 2010
- Facebook to become publicly-listed company - Jan 30, 2012
- Russian president joins Facebook - Oct 20, 2011
- Mark Zuckerberg sued by Facebook investors - Jun 05, 2012
Tags: allegations, facebook, federal probe, goldman sachs, goldman sachs analysts, growth forecasts, initial public offering, ipo, JPMorgan, mail ru, nasdaq, network delays, pavel, private investors, privileged information, ria novosti, ru group, shareholder, social networks, vkontakte