Groupon raises $700M with IPO at $20 per share

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In addition to the 35 million shares Groupon sold through its IPO, the company also granted an option to its underwriters _ which include, among others, Morgan Stanley, Goldman Sachs & Co. and Credit Suisse _ to buy over the next 30 days an additional 5.25 million shares to cover over-allotments.

The sale of the 35 million shares mean Groupon’s initial public offering of stock raised about $700 million, minus investment banking fees and other expenses

In filings with the SEC, Groupon said it hoped to raise $479 million, after expenses and presuming the stock priced at $17 per share, or $552 million if it also sold the 4.5 million in over-allotment shares. It did not go into details on how it plans to spend the money, though it did specify it won’t need to use it to pay for its operations, including marketing expenses, during the next 12 months.

Neither CEO Mason, 31, nor executive chairman and fellow co-founder Eric Lefkofsky, 42, are selling any shares in the IPO. Mason’s stake in the company is now worth about $938.7 million, given the $20 IPO share price, while the stake of Leftofsky, who is Groupon’s largest investor and shareholder, is worth about $2.6 billion.

They’ve made out well previously from the sale of stock, though, according to SEC filings: Lefkofsky, Groupon’s largest investor and shareholder, received $398 million while Mason snagged $28 million.

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Ortutay reported from New York.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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