Groupon IPO Launches and Shares are Jumping
By Chuck Sudo in News on Nov 4, 2011 3:30PM
Groupon's Day of Wall Street Reckoning has arrived with the launch of its Initial Public Offering and, so far, Wall Street traders are bullish on the online daily deal pioneer.
Groupon priced its shares at $20 per share late yesterday, which would have allowed the company to raise $600 million and valued the company at $12.6 billion. That's a far cry from the $750 million analysts believed Groupon would have raised when it filed its IPO prospectus in June. The share pricing would also value the company ad $12.6 billion, more than the rumored $6 billion Google offered to buy Groupon a year ago.
Groupon stocks have so far performed better than expected, shooting up in value 38.5 percent and madness."
Groupon also increased its IPO offering to 35 million shares, which is less than other IPOs and reflects 5.5 percent of the company. Some analysts still skeptical of Groupon and how it values itself remained skeptical toward the company.
