Coupons.com Inc (COUP) shares almost double on IPO day
Coupons.com Inc (NYSE:COUP) was founded in 1998 by Steve Boal and the company has gone public sixteen years later. In the first day of trading, Coupon.com’s shares increased 88% to $30. This is almost double their $16 initial price. Coupons.com raised $168 million during the IPO. Now Coupons.com has a $2.2 billion market cap.
Coupons.com is not just a website where people visit to clip coupons. The company now sells “enterprise software” to companies. Their software is used by retailers and manufacturers of consumer goods that use it to distribute coupons through the Internet, mobile devices, and social media.
Boal used to work in derivatives trading technology at J.P. Morgan Chase & Co. The domain name Coupons.com costed around $1.3 million plus equity in the company.
Coupons.com generated $168 million in 2013 sales, which is a 50% increase from the prior year. The company saw 1.3 billion revenue-generation transactions in 2013, which is up 43%. However, the company posted a loss last year of $11.2 million. The company was profitable in the fourth quarter.
[Source: WSJ]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry