Daily deals giant Groupon has raised a monstrous $700 million in its initial public offering, making it the largest IPO from an Internet company since Google raised $1.7 billion when it went public in 2004.
Groupon set its stock price at $20 a share, higher than even the most generous estimates of between $16 and $18 a share, reports Kara Swisher at AllThingsD. Due to massive demand for its stock, the company also decided to increase the number of shares in its IPO from 30 million to 35 million. At the $20 trading price, Groupon is now worth approximately $12.7 billion. The company, which will trade under the GRPN ticker on the Nasdaq, is only three years old.
Based in Chicago, Groupon has had a swift and tumultuous ride to its IPO. Many have criticized the company for its use of alternative accounting methods in the run-up to its IPO. And volatility within Groupon’s executive echelon, as well as questionable growth prospects and suspicion that partner retailer boost prices before offering a “discount” through Groupon, has tainted the dealmaker’s reputation in some circles.
Despite the bad press and setbacks, Groupon obviously remains a highly sought after stock. The price of the company’s stock is expected to hold strong when the Nasdaq opening bell rings at 9:30am ET this morning. Update: Groupon will be released on quotation at 10:25am ET, and trading on the stock will start at 10:40am ET.
