IPO News Archive
Groupon pops 31% in first day of trading; sixth most valuable US Internet company
Groupon completed its much-anticipated and upsized IPO on Thursday, setting a $20 price tag on 35 million shares (vs. proposed 30 million shares at $16 to $18). The daily deal juggernaut's $700 million deal size and $13.3 billion market cap make it the second largest US Internet company to go public since Google's $1.7 billion IPO in August 2004 at a $25 billion market cap. Groupon opened for trading on the Nasdaq up 40% from its IPO price at $28. It closed on Friday at $26.11, representing a first day pop of 31%. Groupon's $17.4 billion market cap makes it the sixth most valuable US Internet company.
Largest US Internet Companies By Market Cap
||Market Cap (bil)
|Groupon|| GRPN ||11/03/11||$17.4|
|Akamai Technologies Inc||AKAM||10/28/99||$5.5|
Groupon's IPO is a significant icebreaker in an IPO market that has been essentially shut down since mid-August. However, since the beginning of the third quarter, institutional money flows have been going into newly public companies, providing a positive backdrop for the Groupon IPO. The FTSE Renaissance IPO Index
has risen +14.5% from the beginning of the third quarter to date compared to the S&P 500 up +11.5% over the same period.
The IPO calendar
has been building including Angie's List (ANGI
) and Zynga (ZNGA
) expected to price before year end.