Groupon Inc. (NASDAQ:GRPN) shares soared 50% to $30 on debut day after fixing the IPO at $20 a share, raising $680 million via IPO. The deal valued the company at $12.6 billion.
Groupon had been expecting to offer 30 million shares for $16 to $18 each, or as much as $540 million, but fixed its IPO price at $20 after noticing heavy demand for its shares.
The company also increased its offerings by 5 million to 35 million shares.
The company has become the largest IPO by an Internet company since Google Inc raised $1.7 billion in 2004.
Groupon is expensive. The $12.8 billion valuation is only achievable because of the low float,” said Rob Romero, head of technology-focused hedge fund firm Connective Capital Management.
The stock is now trading higher by 46.55% to $29.31.
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