Facebook IPO: shares on rollercoaster ride

Facebook has gone public in an IPO that could raise more than $18 billion. Facebook priced its IPO at $38 per share and is selling 180 million shares in the IPO. The shares notched up big opening gains amid high demand and frenzied trading on the NASDAQ stock market under the ticker FB.

If underwriters exercise a greenshoe option, Facebook could raise as much as $18.4 billion, making Facebook’s IPO the second-largest initial public offering in history, surpassing the value of General Motors’ IPO.

Insiders have found no shortage of investors to fleece. Goldman Sachs doubled the amount of its own holdings sold in the IPO. It begs the question: if Facebook is worth owning, then why did company insiders dump $9.2 billion in shares?

Is Facebook overpriced? We’d like to see your thoughts in the comments below.