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0 pointsjsm38614y ago0 comments

But Groupon is now a public company and what they've done isn't exactly normal (though LinkedIn did something similar...and of course yesterday the follow-on was announced):

Groupon floated a record-low percentage of its total outstanding shares among U.S. Internet companies, helping to stoke demand. Only 4.7 percent of the stock was made available to the public, based on the offering terms. That’s less than in any U.S. Internet company IPO of more $200 million since at least 2000, Bloomberg data show.

http://www.bloomberg.com/news/2011-11-03/groupon-said-to-rai...

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pitdesi14y ago

It isn't quite common, but many of the internet darlings did this same thing. I don't know why it is news all of a sudden. While GRPN has the smallest float, there were many other companies in the ballpark (P, LNKD, GOOG, etc). A more general rule of thumb for IPO's is 20-25%, but all of these guys had single digit values. It is fairly smart move on their part. They get a higher valuation due to demand and supply, and a long as all of the investors/employees don't flood the market with their shares, the early investors/employees win.

Recall Google: http://en.wikipedia.org/wiki/History_of_Google#Financing_and...

They floated 14m out of 271m total shares, and other stockholders added another 5m or so... so the total amount it IPO'd for was around 7% of the company but GOOG's share was roughly 5%

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