Groupon upsized its much-anticipated IPO and priced at $20, 17% above the midpoint of the $16-$18 range. The daily deal juggernaut sold 35 million shares, 17% more than the 30 million originally intended, resulting in a deal size 37% larger than anticipated. Groupon's $700 million deal size and $13.3 billion market cap make it the 2nd largest U.S. internet company to go public since Google's $1.7 billion IPO in August 2004 at a $25 billion market cap.
Groupon's IPO is a significant icebreaker in an IPO market that has been essentially shut down since mid-August. However, since the beginning of the third quarter, institutional money flows have been going into newly public companies, providing a positive backdrop for the Groupon IPO. The FTSE Renaissance IPO Index has risen +14.5% from the beginning of the third quarter to date compared to the S&P 500 up +11.5% over the same period.
The IPO calendar has been building including Angie's List (ANGI) and Zynga (ZNGA) expected to price before year end.
