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Groupon shares jump 30% on IPO debut

November 08, 2011 By: Dr Search Principal Consultant at the Search Clinic Category: Customer Service, Ecommerce, internet, Technology Companies, Uncategorized

Shares in daily deals site Groupon have jumped more than 30% on the company’s first day of trading in New York.Groupon shares jump 30% on IPO debutGroupon’s shares were listed on the Nasdaq at $20 a share but closed at $26.11, having earlier risen to $29.95.

On Thursday, the company said it had sold 35 million shares for $20 each, raising £437 million ($700 million.)

This valued the firm at £7.94 billion ($12.7 billion), making it the second biggest internet company to make a market debut, behind Google, which was valued at £14.4 billion ($23.1 billion) in 2004.

Groupon had originally filed with the US Securities and Exchange Commission to sell 30 million shares for $16 to $18 each, but high demand led it to raise the price and number of shares for sale.

However the 35 million shares sold still represents only about 5% of the company.

Groupon offers coupons to its subscribers, which give them discount deals that are available that day only on anything from restaurant meals to spa treatments.

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