Initial public offering of the most popular Russian social network Vkontakte has been postponed indefinitely.The reason is the Facebook’s failed IPO.
The decision to delay the IPO has been made by the owner of Vkontakte Paul Durov, who wrote the following in his Twitter: Facebook’s IPO has destroyed the faith of many private investors in social networks and the VK’s IPO is postponed indefinitely.
Analysts called Facebook’s initial public offering on the stock exchange the worst IPO of the last decade. According to Bloomberg TV experts, the first five days of Facebook’s IPO were even more unsuccessful than the MS Global company's IPO which previously was considered to be a failure. During the first five days of trading Facebook stocks went 16% down. As for Friday, May 25, shares of the world's largest social network fell by 3.4%. Social network’s securities continue to fall in price.
We would remind you that a few days ago it became known that Paul Durov got a controlling interest of the social network Vkontakte that he founded: Mail.ru Group gave him power of attorney to vote at the meetings of Mail.ru Group shareholders owned 40% shares of Vk. com. Now Durov has 52% stake of the social network.