Zuckerberg pledge boosts Facebook shares by 3%
NEW YORK (AFP) - Facebook shares got a 3 per cent boost on Wednesday after co-founder Mark Zuckerberg pledged to not sell any of his shares for another year.
After sinking to a new low on Tuesday of US$17.55 - less than half the May IPO price of US$38 - Facebook rebounded after a new company filing with the Securities and Exchange Commission said Mr Zuckerberg would not sell any of his 500 million shares at least for another year.
In early trade the shares were up 3.2 per cent to US$18.30. The market was already worried that employees will sell some of their 234 million shares into the market when the post-IPO holding restrictions on them end on Oct 29.
The company and its Wall Street underwriters have come under a hail of criticism accusing them of greedily issuing more shares than the market could handle, at an inflated price, in the hotly anticipated May 18 debut on the market.