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Goldman Sachs closes below IPO price

By Aaron Siegel

November 20, 2008 3:49 pm ET

Shares of The Goldman Sachs Group Inc. closed below their initial offering price of $53 on Thursday, a first since the company went public in May 1999.

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The stock dipped as low as $49 in intraday trading, closing at $52.36.

The New York-based company’s shares reached a high of $247.97 on Oct. 31, 2007, creating a market value of $105 billion.

In September, Goldman joined New York-based Morgan Stanley in converting to a bank holding company, with the aim of deepening its capital base.

Goldman is expected to post a loss for its fiscal fourth quarter, which ends Nov. 30, and two analysts are predicting those losses will be steep.

On Monday, Brad Hintz, an analyst at Sanford C. Bernstein & Co. LLC of New York, forecast a loss of 54 cents per share for the company, after earlier estimating earnings of $2.12 per share.

Analyst Prashant A. Bhatia at New York-based Citigroup Inc. forecasted a fiscal fourth-quarter loss of $1.60 per share and $4 billion in write-downs, after a previous earnings estimate of $3.70 per share.

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