Groupon Opens Up IPO Trading At $28

Posted Nov 4, 2011

Groupon has done it. They have become one of the fastest growing tech companies to go from launch to IPO. Groupon started as a company called in November 2007. raised $7.3 million in funding and then they decided to change focus to become Groupon in November 2008.

Groupon originally started off as a simple WordPress blog that offered daily deals for local merchants. Within 3 years, the company raised over a billion dollars and expanded to 565 cities. The company spent over $10 million to snap up some of their overseas clones.

Today Groupon is trading under the NASDAQ with the symbol GRPN. Last night the company priced their shares at $20. Today their shares are trading at about $28 per share. This is an increase of 40%. Groupon is floating about 35 million shares, which is a small percentage of their outstanding shares of 637.3 million (5.5%). Groupon’s valuation has been made about $17.8 billion.

Groupon filed their S-1 in early June and received a lot of negative press since then. The revenues on the company’s S-1 for 2010 was adjusted from $713 million to $313 million due to reporting errors. The revenues for the first half of 2011 was reduced to $1.5 billion to $688 million because of the same adjustment. Last year Groupon turned down a $6 billion offer from Google and it appears to have been the right move. One of the reasons why that deal fell through was reportedly because Groupon asked Google for a $1 billion break-up fee.

Last year Groupon lost $420 million and $117.1 million Q1 2011 due to marketing and expansion costs. As of the time I was writing this article, Groupon’s stock price was trading at $28.73.