Groupon (Nasdaq: GRPN) closed today at $16.96, below its IPO price of $20 per share. Groupon priced its IPO on Nov. 3 and began trading on Nov. 4. It hit a high of $31.14 in intraday trading on Nov. 4. In my opinion, this should not affect the IPO plans of seasoned companies with proven business models. Groupon is a young company with, in my view, a still unproven business model in a fiercely competitive market. The IPO window should still be open to ompanies with proven, profitable business models.
Here are some links to articles discussing Groupon:
New York Times: http://dealbook.nytimes.com/2011/11/23/as-investors-flee-groupon-outlook-for-i-p-o-s-darkens/
Bloomberg: http://www.businessweek.com/news/2011-11-23/groupon-shares-plunge-below-ipo-price-3-weeks-after-offering.html
Mercury News: http://www.mercurynews.com/financial-markets/ci_19401073
Here are some links to articles discussing Groupon:
New York Times: http://dealbook.nytimes.com/2011/11/23/as-investors-flee-groupon-outlook-for-i-p-o-s-darkens/
Bloomberg: http://www.businessweek.com/news/2011-11-23/groupon-shares-plunge-below-ipo-price-3-weeks-after-offering.html
Mercury News: http://www.mercurynews.com/financial-markets/ci_19401073
