Our Passion for IPOs
News & Views
Largest Global IPOs
Largest US IPOs
Largest US IPOs YTD
Largest US Internet IPOs
Top First Day Returns
US IPO Stats
IPO Average Age
IPO Industry Breakdown
Offer Price Discounts
Global IPO Stats
IPOs by Region
IPO Industry Breakdown
Press Contact Form
Free iPhone App
Free Android App
IPO News Feed
IPO News Archive
Interested in IPO Investing?
Groupon hopes to build on recent successful IPO growth plays with $750 million listing
Analyst IPO Blog
Groupon filed Thursday with the SEC to raise up to $750 million in an initial public offering. The Chicago, IL-based company is a local e-commerce site that serves as an intermediary between merchants and customers, allowing merchants to broadcast sales and discounts (groupons) to local Groupon members.
According to the SEC filing, Groupon operates in 175 different markets in the US and 43 different countries, allowing over 56 thousand merchants to advertise sales to over 83 million subscribers using daily email, website postings, mobile applications, and social networks. Reaching beyond its American roots, the company derived only 46% of its revenue from its North American segment in the most recent quarters. In the three months ended March 31, the company's broad subscriber base purchased over 28 million groupons.
Groupon generates its revenue when customers purchase their coupon offerings, with gross profit being the amount of the ticket price retained after paying a percentage to the offering merchants. The company has grown revenue by leaps and bounds since it was founded in November 2008, and generated $645 million in revenue for the March quarter, up a whopping 63% from the fourth quarter 2010. Although it is not yet profitable, Groupon's free cash flow is positive ($72 million in 2010 on $713 million in revenue) due to the lag in paying merchants their share of customers' up-front payments. The company plans on using the proceeds from the offering to bolster working capital and for general corporate purposes.
Groupon's filing is a further indicator of the
recent strength and continued interest in internet companies
. Year to date there have been 69 IPOs launched, of which 28 are venture capital-backed. These 28 venture-backed deals have averaged a 23% return versus an average 6% return from the rest. These results, the high profile launches of companies like LinkedIn (
), and a proliferation of funds seeking returns from the growth of social media have given impetus to a further round of offerings with notable tech companies like Zynga and Pandora Radio (
) joining Groupon in seeking public offerings. Pandora set terms for its IPO today and is
looking to raise $109 million
when the deal prices the week of June 13.
Groupon plans to list under the symbol (
). Morgan Stanley, Credit Suisse, and Goldman, Sachs & Co. are the lead underwriters on the deal. No pricing terms were disclosed.
Keywords / Tickers:
The information contained herein is proprietary and copyrighted. The media is welcome to use our information and ideas, provided that the following sourcing is included:
IPO investment firm Renaissance Capital (www.renaissancecapital.com)
The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital, the
Global IPO Fund (symbol: IPOSX)
Renaissance IPO ETF (symbol: IPO)
, may have investments in securities of companies mentioned.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Investors should consider the investment objectives, risks, charges and expenses carefully before investing.
As stated in the Prospectus, the total annual operating expenses for the Fund was 3.48%. The Adviser has contractually agreed to keep net expenses from exceeding 2.50% of the Fund’s average daily net assets for at least a year from the date of the Prospectus and for an indefinite period thereafter subject to annual re-approval of the agreement by the Board of Trustees.
An investor cannot invest directly in an index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.
Net Asset Value (NAV)
of the fund is calculated by dividing the total value of all the securities in its portfolio, less any liabilities, by the number of fund shares outstanding.
is current value at which an asset or service can be bought or sold.
is provided to show the comparison of the daily net asset value (NAV) and the midpoint of the closing bid/ask for each of the funds. The
Renaissance IPO Index® (IPOUSA)
is a stock market index based upon a portfolio of U.S.-listed newly public companies that includes securities prior to their inclusion in core U.S. equity portfolios.
The S&P 500® Index (SPX)
is a stock market index based on the market capitalizations of 500 large companies whose common stock is publicly traded on the NYSE. The S&P 500 index components are determined by S&P Dow Jones Indices.
Investments in the
Renaissance IPO ETF, symbol "IPO"
(the “ETF”) and the
Global IPO Fund, symbol "IPOSX"
(the “Mutual Fund”) are subject to investment risk, including possible loss of the principal amounts invested. The ETF and the Mutual Fund (the “Funds”) invest in companies that have recently completed their initial public offerings. These stocks are unseasoned equities lacking trading history, a track record of reporting to investors and widely available research coverage which many result in extreme price volatility. The Funds may also be subject to information technology risk and small and mid-capitalization company risk due to a greater number of IPOs in these sectors. The Funds may hold securities in the form of Depository Receipts, REITs, Master Limited Partnerships (MLPs) which have greater risks than common shares. The strategy has high portfolio turnover and securities lending risks. ETF returns may not match the return of the respective index. The ETF is classified as a non-diversified investment company and is subject to concentration risk.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus and/or summary prospectus with information about the Funds, please visit
. Read the prospectus carefully before investing. Renaissance Capital Investments, Inc., distributor for the Mutual Fund. Foreside Fund Services, LLC, distributor for the ETF, 1-866-486-6645.
Renaissance Capital LLC is an SEC-registered investment adviser.
Renaissance Capital Investments, Inc. is a
-registered broker-dealer, and member of
© 2014 Renaissance Capital LLC. All rights reserved.