In a move that will surprise no one as we've been watching it closely for sometime, Groupon issued 35 million shares in an IPO today, signaling the validity of daily deal sites, even as fatigue sets in.
The shares, which were initially projected to sell at $16-18 ended up going for $20/share. If you do the math, that makes the valuation of the company a whopping $12.7 billion – the biggest since Google’s $23.1 billion way back in 2004.
In early trading today, shares of Groupon rose to $29.20.
While many are questioning whether or not Groupon has a valid business model, they have expanded quickly – 3,000 employees in 35 countries – have rafts of imitators both here and abroad, and reportedly turned their first profit after just 7 months in business.
This news definitely means daily deals are here to stay. It's been three and half years since The Point, which ultimately turned into Groupon, participated in our Chicago mixer event so it's been an amazing to watch the team pivot and grow into a company valued in the billions and ultimately IPO in such a short period of time. We look forward to what else this Chicago-based company has in store.