Groupon IPO Raises an Eye-Catching $700 Million

By David Knight |

The daily deal space is never far from the headlines in tech circles, and the latest big move has seen Groupon raise around $700 million – equivalent to €505 million or £436 million – in its eagerly-anticipated initial public offering on Friday. The IPO, which saw shares traded on the Nasdaq, comes just weeks after Google snapped up German startup DailyDeal.

According to Bloomberg, the enormous sum raised by Groupon Inc. was 30 percent more than it had been seeking. It means Groupon, the biggest online coupon provider, is valued at an eye-watering $12.7 billion (€9.2 billion or £7.9 billion). Some 35 million shares in the Chicago-based company were sold for $20 each.

Like the rest of the daily deal space – which has produced plenty of interest and criticism in German tech circles – the Groupon IPO has been far from free of controversy. It had attracted criticism from many market analysts and was delayed. But the seemingly successful outcome may encourage more private internet concerns to consider a similar move.