Have you heard the latest news about Groupon? Well, everyone seems to expect that Groupon will finally be setting its price for its IPO as it intends to go public very soon. Apparently, the price per share will most likely fall on a higher price than what the company has indicated in its previous filing. If you still remember, Groupon has encountered some problems with SEC when it questioned the company’s accounting practices with regards to the recognition of its revenue and other financial matters before that caused the delay of announcing its stock price.
And as expected, Groupon has finally announced that its shares price will be set to $ 20, which only means that the company will be valued for $ 12.7 billion. Groupon’s valuation has always been debated ever since the first time it has filed with SEC, but Groupon seems to be more confident with its latest valuation and often points to its 83.1 million subscribers to be one of the major reasons why the company deserves such valuation. With this valuation, Groupon is now considered the largest technology company that has ever go public since 2004. Well, Google was the last one that was able to do it.
With these developments, Groupon is now expected to trade its shares publicly and apparently, it will be carrying the symbol GRPN. Based on latest reports, Groupon has also increased its 5 million share offer to 35 million shares at the last minute. Apparently, only 5 percent of its outstanding shares will be traded publicly so we can say that this percentage is still small enough to push its stock price upward within the first day of sale. This incident already happened to Linkedln that also offered around 8.3 percent of its shares when it went public before. This doubled their price per share within the first day that company offered its shares publicly.
However, there are also some that thinks that the price per share as announced by Groupon seems to be overvalued. This is not really surprising since Groupon’s valuation has always been criticized by many. So what is your opinion about it? Does Groupon deserve the valuation that it has declared?
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