Groupon workers on the hunt for values!
The first initial public offering of Groupon stock was expected to be somewhere between $16 and $18 dollars, but it turns out that deal was a bit low. Groupon’s actual IPO was $20 a share, a price increase for the discount website that will give Groupon a staggering $12.76 billion dollar valuation on the open market while raising $700 million dollars for the company. This is slightly less than Groupon’s previous estimate of $15 billion dollars, but still impressive.
Groupon is expected to release 35 million shares of stock, up from a projected 30 million. If the company’s underwriters choose to get involve and share their estimated 5.25 million shares of stock, that could raise Groupon’s float to 40.25 million shares, or about 6.25 percent of the company’s available shares. Whether they will do that or not remains to be seen, but why wouldn’t they get in on the cash grab?
Groupon will begin trading on Nasdaq starting on Friday under the stock symbol GRPN. Groupon enters the market at a volatile time, both in terms of stocks in general and for Groupon itself. There are concerns about the sustainability of its business model, its inability to turn a profit, and concerns about CEO Andrew Mason’s comments in a leaked memo that came out earlier this year. Groupon is also facing stiff competition from Google after Groupon rejected Google’s $6-billion-dollar buyout offer.
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