Technology

Coupons.com IPO Nearly Doubles Out of the Chute

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Source: SEC.gov
Promotions and coupon website Coupons.com Inc. (NYSE: COUP) priced its initial public offering Thursday at $16 a share, above the expected range of $12 to $14, but not high enough to discourage investors. In the first few minutes of trading Friday morning, the shares were up about 90%.

The company’s offering of 10.5 million shares was 500,000 more than planned as well. Gross proceeds from the IPO will be $168 million, and the company’s IPO valuation of $1.2 billion is already up to around $2.25 billion.

Goldman Sachs, Allen & Company, Bank of America Merrill Lynch and RBC Capital Markets are the underwriters and have an option to purchase an additional 1.575 million shares.

We noted in our preview this morning that the company’s revenue grew from $112.1 million in 2012 to $167.9 million in 2013, for sales growth of almost 50%. The company’s operating loss of $59.38 million in 2012 shrank to an operating loss of $10.31 million in 2013. Last year, Coupons.com conducted more than 1.3 billion transactions in which consumers selected a digital coupon or redeemed a coupon code — a 43% increase over 2012.

Coupons.com was founded in 1998, and it took the company a full three years to kick out its first coupon. The firm’s revenue comes when customers use the coupons it offers through manufacturers or stores. The site also sells advertising on its own website and on third-party sites where its coupons are promoted.

Shares were trading at $30.10 at last check, up 88.1% from the $16 offering price.

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