NEW YORK ( TheStreet) -- Groupon has priced its highly anticipated initial public offering, selling 35 million shares at $20 each to raise $700 million.
The Chicago-based online discount deal company was seeking to sell 30 million shares at between $16 to $18 each, so demand was stronger than expected, although still below the original parameters of the deal proposed when Groupon first filed back in June.
>> Sell groupon at the open, expert advises.
The company is now set to start trading Friday on the Nasdaq under the symbol "GRPN." At $20 per share, Groupon's market capitalization is around $12.6 billion.Where the stock heads after the open will be closely watched as the company is still growing the top line, but at a much slower rate than it was just a year ago as competition in the space has grown fierce with both start-ups and established companies like Amazon.com (AMZN) getting into the act. Groupon's revenue for the most recent quarter ended in September totaled $430.2 million, up just 9% from revenue of $392.6 million in the June-ended three-month period. By way of comparison, the company's revenue more than doubled in the calendar fourth quarter of 2010 to $172.2 million from $81.8 million in the third calendar quarter of 2010. For the nine months ended in September, the company lost $308.1 million, or $1.01 per share, on revenue of $1.12 billion, according to the latest S-1 statement. That compares to a loss of $77.7 million, or 23 cents a share, on revenue of $140.7 million in the same period a year earlier. CEO Andrew Mason is already a fairly controversial figure because of missteps during the IPO process, but apparently investors are banking that he will have more "moments of brilliance" than ones of "sheer stupidity," a reference to Mason's address to potential investors in the company's S-1. -- Written by Michael Baron in New York.
>To contact the writer of this article, click here: Michael Baron. >To submit a news tip, send an email to: firstname.lastname@example.org
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV