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Groupon share sale raises more than expected | Groupon share sale raises more than expected |
(40 minutes later) | |
The sale of shares in Groupon has raised $700m (£437m) after the public offering was priced higher than had been expected. | The sale of shares in Groupon has raised $700m (£437m) after the public offering was priced higher than had been expected. |
Shares in the company were originally priced in a range of $16 to $18 a share, but were eventually sold at $20. | Shares in the company were originally priced in a range of $16 to $18 a share, but were eventually sold at $20. |
It values the business at almost $13bn. | It values the business at almost $13bn. |
Groupon offers coupons to its subscribers, which give them discount deals that are available that day only on anything from restaurant meals to spa treatments. | Groupon offers coupons to its subscribers, which give them discount deals that are available that day only on anything from restaurant meals to spa treatments. |
Groupon increased the number of shares it was selling to 35 million shares from 30 million shares, but that was still only about 5% of the company. | Groupon increased the number of shares it was selling to 35 million shares from 30 million shares, but that was still only about 5% of the company. |
The shares will begin trading on the Nasdaq stock exchange later on Friday. | |
Groupon's $12.7bn valuation makes it the second biggest internet company to make a market debut, behind Google, which was valued at $23.1bn in 2004. | |
But some analysts have suggested that the high valuation has only been achieved because such a small proportion of the company has been sold. | |
"Groupon is expensive. The valuation is only achievable because of the low float," said Rob Romero, head of technology-focused hedge fund firm Connective Capital Management. | |
There have also been concerns that Groupon is vulnerable to competition from, for example, the soon-to-launch Google Offers. |
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