WSJ.com GroupOn.com To Go Public Tomorrow at $20 Per Share

According to the Wall Street Journal, Groupon.com is going public tomorrow on the Nasdaq and is expected to be priced at $20 a share.

At $20 a share the company will carry a valuation of Groupon at nearly $13 billion.

The company plans on trading under the symbol; GRPN

Groupon is offering up to 34.5 million shares in its IPO, representing just 5.4% of the entire company’s 637.3 million shares outstanding.

Cnet.com is reporting that the IPO is oversubscribed at the $20 per share figure which is why it was raised from the earlier range of $16-$18

The company turned down a buyout by Google late last year at a rumored price of $6 Billion

 

 

 

 

Comments

  1. MHB says

    Shane

    I don’t know about that maybe smart on paper but that company has a very narrow trading range in the last 52 weeks: $13.21 – $16.67 plus it only averages 90,000 shares a day traded in the last six months.

    Groupon like Linked in could double in trading tomorrow not likely to happen to GRPN

  2. BFitz says

    13Bill for a company that does not turn a profit, was knowingly reporting income against clear SEC rules of accounting and uses tomorrow’s money to pay businesses who ran deals last month. Party likes 1999…Oh and they just laid people off.

  3. BFitz says

    C’mon MHB. That’s spin. When things are great and in high growth, you don’t blow out that many people. If there is so much demand they need people to just answer the phone, not better sales folks. The financials were clear, they do not have the cash on hand today to pay all the businesses they owe money to for the last 90 days. These new promotions for special events and selling out restaurants at 3am or 3pm; very limited universe of demand. Their month-plus backlog is from weak businesses with no demand. A strong local brand can have an offer up in 10 days, then they call you in a month and ask you to do it again.

    However, I am sure the stock will sell and soar, just not with funds from my IRA. com

  4. says

    I would love to short it if it pops…but can you short ipo stocks?

    My brokerage etrade.com does not let you short ipo stocks.

    My guess is that groupon is worth about $15/share.

    I would short it at $25 to $30 and ride it back down to $15 where it belongs.

    Good Luck to all.

  5. says

    Anunt hit the nail on the head. You can’t short Groupon today and this thing will go up and down like fishing ship off Alaska. It could sail to 100 and back down today. Nobody knows the top and it WILL pop. It’s just a matter when. There will be an opportunity to make some money today but there is a big chance to lose some. Good luck to all and I think eventually you’ll be getting a groupon coupon for the shares at $10 down the road.

  6. SL says

    Shane is spot on. Of the $1B of VC raised, 87% was used to cash out. Astonishing. Coupled with the business model essentially yielding breakeven margin it’s a disaster waiting to happen. The ootm put premium is going to be in the stratosphere when the LEAPs open down the road.

    http://www.businessinsider.com/the-millions-of-dollars-groupons-investors-and-executives-have-already-taken-off-the-table-2011-6#

    Otoh, given all the hedgies that will be shooting against it, it could very well pull a NFLX. In any case it’s going to be a fun trade before the company flames out.

  7. says

    Its definitely a short. They have a dozen banks participating which is highly unusual, normally 2 or 3. None of them thought they could raise more than $50M each. If Groupon don’t raise ar least $600M they can’t pay current debt obligations to vendors and could very well be out of business soon.

  8. Peter says

    The business model is nothing more then getting a business to offer their goods/services for a huge discount and then send it to their huge email list. Not worth $20….maybe a penny stock?

  9. SL says

    @MHB: The only way they could get this pos oversubscribed is by offering a measly 5%. That’s the pop you’re seeing, not prospectus-based.

    Of course the added benefit of a thin float is that helps the underwriters push the bid when the (multiple) secondaries hit down the road. Like P is getting set up now.

    So it’s definitely a success for day/position traders. Mom and pops will be ground into a foul, nasty gristle once the pop is gone.

  10. domain guy says

    excellant commets about groupon on this board.the ipo will be a dud, the biz plan is so so. sec required re accounting of the discounts…and all early investors want out at the public expense.another demand media stock up and then down quickly….and no you cannot short an ipo.ipos are suscribed or offered on a best as basis.

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