Groupon is expected to make its commercial debut Friday on the Nasdaq Stock Market under the symbol "grpn."
The online search leader made his public debut at a market capitalization of $ 23.1 billion seven years ago. In comparison, LinkedIn Corp. went public in May with a market value of $ 4.3 billion and a $ 8.4 billion at the end of the session on Thursday.
The price is a milestone in a process that served as an awareness of Groupon, a fast growing company that has evoked memories of the exuberance of the boom of the dot-com. It comes at a time of turmoil in markets around the world and deep economic problems, IPO Groupon has been followed closely by fellow Web startups looking to follow a similar path.
This is a high valuation for a service that was started three years ago, but a large drop of the estimated $ 25 billion floating when the company filed its IPO plans in June, months after rejecting a takeover offer of $ 6 billion from Google.
Groupon began in 2008 when the computer programmer Andrew Mason figured out how to get people excited about the business stamp on margin.
The company sends daily emails to subscribers that offers the opportunity to purchase discount offers everything from spa services to messenger bags for restaurant meals, as long as enough people sign up for the agreement. The company then takes a part of what people pay and gives the rest to the seller. While some companies see this as good publicity, others have complained that lets Groupon coupon-collecting flooded with bargain hunters who never returned.
In late September, Groupon operates in 175 markets in North America and 45 countries. The company had 143 million subscribers by the end of September, and sold 33 million Groupons in July-September quarter.
Groupon faced a number of difficulties that led to its IPO. Attracted a review of the Securities and Exchange Commission, and the rivals and critics have been popping up left and right.
"This is not Facebook, where you can do nothing wrong," said veteran IPO analyst Scott Sweet, the owner of IPO Boutique. Groupon called an "accident waiting to happen."
Sweet noted that the problems the company has had with the SEC that led to Groupon rethink the way in which the accounts of the revenue, reduce to half of what was originally reported. The analyst is also one of those who question the business model the company, its marketing costs high and frantic pace of hiring has increased its ranks to more than 10,000 employees. That is about four times more than Facebook.
Another troubling sign is the number of shares of Groupon offered to the public. The company is "floating" 4. 7 percent of the shares available - 30 million - which is well below the average for many leading technology companies have offered their IPOs, including Google, online retailer Amazon.com Inc. and, more recently, Internet radio service Pandora Media Inc. and professional networking site LinkedIn. This has raised concerns that Groupon is trying to boost demand - and therefore its value - by limiting supply.
Mutual funds, pension funds and other big money managers had the opportunity for the first time in the purchase of most of the 30 million shares in the IPO Thursday night due to the actions of these offers is normally sold to customers Investment banks "above." Main Street ", investors will have the opportunity for the first time in Groupon on Friday.
In addition to the 30 million shares sold Groupon through its IPO, the company also sold 4.5 million shares to its subscribers more - including, among others, Morgan Stanley, Goldman Sachs & Co. and Credit Suisse - to cover over-allotments.
All 34.5 million shares were acquired on Thursday, that is, the initial public offering of shares of Groupon raised about $ 690 million, less investment banking fees and other expenses
In documents filed with the SEC, said Groupon hopes to raise $ 479 million, after expenses and assuming that the shares at a price of $ 17 per share, or $ 552 million if sold also $ 4.5 million in shares of overallocation. He did not elaborate on how it plans to spend the money, but specified that do not have to use to pay for its operations, including marketing costs over the next 12 months.
Neither CEO Mason, 31, or the chief executive and co-founding member Eric Lefkofsky, 42, are the sale of any participation in the IPO. Mason game in the company is now worth $ 938.7 million, taking into account the price of IPO shares for U.S. $ 20, while the share of Leftofsky, which is the largest investor and shareholder Groupon , worth about $ 2.6 billion.
They have done well so far in the sale of shares, however, according to the SEC: Lefkofsky, Groupon's largest investor and shareholder, received $ 398 million, while Mason snagged $ 28 million.
The online search leader made his public debut at a market capitalization of $ 23.1 billion seven years ago. In comparison, LinkedIn Corp. went public in May with a market value of $ 4.3 billion and a $ 8.4 billion at the end of the session on Thursday. The price is a milestone in a process that served as an awareness of Groupon, a fast growing company that has evoked memories of the exuberance of the boom of the dot-com. It comes at a time of turmoil in markets around the world and deep economic problems, IPO Groupon has been followed closely by fellow Web startups looking to follow a similar path.
This is a high valuation for a service that was started three years ago, but a large drop of the estimated $ 25 billion floating when the company filed its IPO plans in June, months after rejecting a takeover offer of $ 6 billion from Google.
Groupon began in 2008 when the computer programmer Andrew Mason figured out how to get people excited about the business stamp on margin.
The company sends daily emails to subscribers that offers the opportunity to purchase discount offers everything from spa services to messenger bags for restaurant meals, as long as enough people sign up for the agreement. The company then takes a part of what people pay and gives the rest to the seller. While some companies see this as good publicity, others have complained that lets Groupon coupon-collecting flooded with bargain hunters who never returned.
In late September, Groupon operates in 175 markets in North America and 45 countries. The company had 143 million subscribers by the end of September, and sold 33 million Groupons in July-September quarter.
Groupon faced a number of difficulties that led to its IPO. Attracted a review of the Securities and Exchange Commission, and the rivals and critics have been popping up left and right.
"This is not Facebook, where you can do nothing wrong," said veteran IPO analyst Scott Sweet, the owner of IPO Boutique. Groupon called an "accident waiting to happen."
Sweet noted that the problems the company has had with the SEC that led to Groupon rethink the way in which the accounts of the revenue, reduce to half of what was originally reported. The analyst is also one of those who question the business model the company, its marketing costs high and frantic pace of hiring has increased its ranks to more than 10,000 employees. That is about four times more than Facebook.
Another troubling sign is the number of shares of Groupon offered to the public. The company is "floating" 4. 7 percent of the shares available - 30 million - which is well below the average for many leading technology companies have offered their IPOs, including Google, online retailer Amazon.com Inc. and, more recently, Internet radio service Pandora Media Inc. and professional networking site LinkedIn. This has raised concerns that Groupon is trying to boost demand - and therefore its value - by limiting supply.
Mutual funds, pension funds and other big money managers had the opportunity for the first time in the purchase of most of the 30 million shares in the IPO Thursday night due to the actions of these offers is normally sold to customers Investment banks "above." Main Street ", investors will have the opportunity for the first time in Groupon on Friday.
In addition to the 30 million shares sold Groupon through its IPO, the company also sold 4.5 million shares to its subscribers more - including, among others, Morgan Stanley, Goldman Sachs & Co. and Credit Suisse - to cover over-allotments.
All 34.5 million shares were acquired on Thursday, that is, the initial public offering of shares of Groupon raised about $ 690 million, less investment banking fees and other expenses
In documents filed with the SEC, said Groupon hopes to raise $ 479 million, after expenses and assuming that the shares at a price of $ 17 per share, or $ 552 million if sold also $ 4.5 million in shares of overallocation. He did not elaborate on how it plans to spend the money, but specified that do not have to use to pay for its operations, including marketing costs over the next 12 months.
Neither CEO Mason, 31, or the chief executive and co-founding member Eric Lefkofsky, 42, are the sale of any participation in the IPO. Mason game in the company is now worth $ 938.7 million, taking into account the price of IPO shares for U.S. $ 20, while the share of Leftofsky, which is the largest investor and shareholder Groupon , worth about $ 2.6 billion.
They have done well so far in the sale of shares, however, according to the SEC: Lefkofsky, Groupon's largest investor and shareholder, received $ 398 million, while Mason snagged $ 28 million.
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