HOLY CRAP: Look At How Much Groupon Had To Pay Just To Go Public

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This screenshot comes from Groupon’s amendment to its S-1, and it shows the enormous fees Groupon had to pay to go public.

The final tab was $5.7 million to the SEC, FINRA, NASDAQ, lawyers, accountants, and others.

That’s a lot of money, but it doesn’t even factor in the investment banking fee. The investment bankers take 7% of the IPO, or because its raising $700 million, in this case, $49 million.

Investment bankers get more than that, though. They get a secret money maker called the “greenshoe,” which means they can buy 15% of the 35 million share allotment at $20, then sell into the market at whatever price it starts, which appears to be $50, right now.

That’s more money out of Groupon’s pocket and into the investment banks’.

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