After the debacle that is NASDAQ’s IPO system, Facebook Inc is considering a listing put forward by the New York Stock Exchange (NYSE), a source familiar with the situation told Reuters.
Facebook exchanged phone calls and emails with NYSE Euronext and is considering their pitch, according to the source without elaborating on details. Although we don’t know exactly what NYSE is pitching to Facebook, Bloomberg cited a source saying the proposal involved Facebook switching its listing from the Nasdaq. But NYSE Euronext said it had held no such discussions with the company.
“There have been no discussions with Facebook regarding switching their listing in light of the events of the last week, nor do we think a discussion along those lines would be appropriate at this time,” the U.S. exchange said in a statement. The Facebook stock continuing to take a dive, some pundits believe it to be set by NASDAQ’s glitches during the social network giant’s biggest day. Now, Facebook its banks that help take the company public face questions over a $16 billion IPO that also lead to shareholders suing for hidden growth forecasts. Facebook’s shares have fallen more than 15 percent from their $38 IPO price to a close of $32 on Wednesday.
Typically, NASDAQ is the place to be when it comes to technology companies. But since the troubled Friday opening, NASDAQ and Facebook grown tension bewteen each other, making NYSE’s ”friend request” a bit more enticing for the social network.
Still, switching exchanges so soon after an IPO would be highly unusual, said Morningstar analyst Gaston Ceron. He noted that only a very small number of companies every year switch the exchanges that they are listed on.
Yeah, source was NASDAQ. How ironic.