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Groupon IPO

November 4, 2011 by · Comments Off on Groupon IPO 

Groupon IPO, Groupon Inc rose to 700 million after increasing the size of its initial public offering, making it the largest IPO of a U.S. Internet company since Google Inc. rose and 1.7 billion in 2004.

The world leader in “daily deals” is now worth almost 13 billion and then to say that the increased supply of 5 million shares to 35 million in total and the prices on each and 20 for over an initial range and 16 to and 18.

The debut of the company three years old, who sells Internet coupons for everything from spa treatments to the work of the nose, is one of the most closely watched this year. His small fleet represents just over 5 percent of the company and helped to boost demand and price.

That restriction – one of the smaller floats past decade – should support the share price of Groupon when you start trading on the Nasdaq under the ticker on Friday grpn, analysts say.

But in the long term, have expressed concern about competition from the likes of large pockets of Google and Amazon.com Inc, the need to spend continuously to promote the growth of users, and questions about accounting after the company changed its IPO presentations twice to change the way it accounted for revenue.

“Groupon is expensive. The value of 12.8 billion and can only be achieved because the float down,” said Rob Romero, head of technology-focused hedge fund firm Connective Capital Management.

“The reaction today to supply floating LinkedIn additional participation is an indicator of the degree of tension between supply and demand for shares can distort the assessment of a new public offering.”

LinkedIn, which was well above its IPO price and 45 years, fell 9 percent after hours after the submission of a proposal to sell up to 500 million in stock. They had drifted 8.3 percent of its shares during the IPO.

Pandora Media, a music streaming service and a recent dotcom debut, sold 9.2 percent of the company.

A and 12.8 billion, Groupon commands a price tag more than twice what Google offered to buy the company last year.

Widespread criticism

Beyond Friday, shares of Groupon can be volatile on concerns about the company’s ability to generate long-term earnings and revenue growth, as well as the possibility that existing investors to sell some of their holdings in some point.

Peculiar major music and CEO Andrew Mason and his executive team spent nearly two weeks on the road pitching to investors and to address widespread criticism of replicable business model Groupon, slowing growth and accounting problems.

“The investor after the IPO is going to take a risk in this deal,” said Josef Schuster, founder of IPO research and investment house iPox Schuster. “It is perhaps a good deal for an operator, and one day, but do not want to be in it for the long term.”

To pull the offer from the company reduced its value by half. Existing shareholders are not selling. And it skipped meetings with potential investors in Europe and Asia.

If the underwriters, led by Morgan Stanley, Goldman Sachs and Credit Suisse, the exercise of their right to buy a little more than 5 million shares of Groupon in the IPO, known as greenshoe, Groupon rise to over 800 million and, before fees.

Wall Street Friday Groupon sample analyzed for clues on how other highly anticipated IPO dot-com – the likes of Facebook or Zynga – fee may.

LinkedIn rose in the first trading day in May and remains well above its IPO price and 45. Pandora Shares initially emerged and then collapsed. Its shares traded below the IPO price and 16 on Thursday and in just over 15.

Groupon “is a company permission to market to 150 million consumers daily. No other company in the world has ever had that kind of reach,” said Boyan Josic, executive director of DailyDealMedia, which tracks the industry.

GROUPON IPO

October 25, 2011 by · Comments Off on GROUPON IPO 

GROUPON IPO, Groupon Inc plans to raise up to 540 million in an initial public offering, less than expected, as the daily deals website faces a weak stock market, executive departures, and questions about its accounting and business model.
The company expects to sell 30 million shares, or less than 5 percent of the company between 16 and 18 and each, according to a regulatory filing Friday.

The midpoint would Groupon value and 10.8 billion, far less than the 20 billion and was expected initially, but still above the 6000 million and Google Inc offered to pay for the business last year.

Despite the low valuation, some analysts say that the actions of Groupon could still have problems when it’s released in November. They point to questions about long-term viability of a company faces fierce competition in a business that has low barriers to entry.

The fact that Groupon has changed its accounting twice under pressure from regulators, and the loss of two operations officers this year, has not instilled confidence.

“This offer seems very, very attractive,” said Josef Schuster, founder of IPO research based in Chicago and Schuster iPox investment house. “I think it’s overvalued.”

He said that with the gradual reduction of the IPO and the suggested small float more shares could be downloaded later. According to the lawsuit, the initial public offering and raise between 480 million and 540 million, compared with a previous target of up to + 750 million.

Supply industry on the Internet every day has exploded into a billion dollar business from Groupon was released in late 2008. That growth has attracted hundreds of competitors, including giants like Google and Amazon.com Inc.

Brad Gastwirth, co-founder of the investment strategy ABR, an independent research firm focusing on technology and health, said the low appraisal will help the IPO, but have expressed concern about whether Groupon can diversify their income sources and switching to higher margin products.

“There was interest from investors very little agreement on the valuation and 20 more than a billion,”said Gastwirth.” While on the surface of multiple prices and sales is becoming more reasonable, there are still many questions that need answering and before investors feel comfortable with this IPO.”

Lower losses

Groupon is one of the most closely watched IPO this year, as financial market turmoil disrupted many plans stock offering and reduce the value of the few who do it. If Groupon is successful, it will bode well for other companies also are considering going public, including the social gaming company Zynga and Facebook.

“The market is slowly reopening,”said the head of Bob McCooey NASDAQ lists.” Companies like Groupon have been to wait and see mode for quite some time and are now seeing an opportunity to go out and get a price, and are taking advantage of that.”

The shares are expected to trade on Nasdaq under the symbol “grpn.”

Groupon is preparing to launch next week on tour with Andrew Mason CEO, CFO child Jason and Jeff Holden overhead product to attract potential investors.

A major question marks about Groupon has been whether the company can be profitable soon. IPO Filing released Friday for the third quarter results and some progress on profitability.

On a pro forma operating basis, excluding stock-based compensation, loss of Groupon and declined to 2 million in the third quarter and 62 million in the second quarter, partly because it keeps a lid on marketing costs. Earlier this year, Richard Williams was hired Amazon to marketing of the head.

The company said it had 30 million customers at the end of September, up from 23 million three months ago. Customers are subscribers who have purchased one of Groupon coupons.

Repeat customers increased to 16 million in the third quarter of 12 million late in the second quarter, the company also said in his presentation.

The average number of coupons sold per customer was 4.2, up 5 percent over the past three months.

Morgan Stanley, Goldman Sachs & Co and Credit Suisse are the main underwriters of the offering.

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