After pricing at $20, new shares of Groupon (NASDAQ:GRPN) immediately hit $28 on the open. But by the end of the day, the stock leveled out at $26.05. The valuation? A cool $17.6 billion.
According to Dun & Bradstreet’s (NYSE:DNB) Tech IPO Specialist Lee Simmons, “The company’s debut is no small achievement when you consider that it has endured intense investor and regulatory scrutiny, was lambasted for spurning a $6 billion offer from Google (NASDAQ:GOOG) and was roasted by analysts across the board as being overvalued. Some of those concerns may yet persist, but Andrew Mason & Company are no doubt savoring their public market foray as a significant victory. A larger question remains, however: When will Groupon be profitable?”
Simmons also put together the chart below (using some data from D&B as well as CapitalIQ). It shows the top Internet IPOs (in terms of capital raised), and Groupon is one for the history books:
- Google: August 2004, raised $1.67 billion
- Groupon: November 2011, $700 million
- LinkedIn (NYSE:LNKD): May 2011, $352.8 million
- Bankrate (NASDAQ:RATE): June 2011, $300 million
- Spark Networks (AMEX:LOV): February 2006, $258.8 million
- Limelight Networks (NASDAQ:LLNW): June 2007, $240 million
- Equinix (NASDAQ:EQIX): August 2000, $240 million
- Akamai Technologies (NASDAQ:AKAM): October 1999, $234 million
- Dice Holdings (NASDAQ:DHX): July 2007, $217.1 million
- InterNAP Network Services (NASDAQ:INAP): September 1999, $190 million
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli. As of this writing, he did not own a position in any of the aforementioned stocks.