HOLY CRAP: Look At How Much Groupon Had To Pay Just To Go Public
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’.
- Groupon Is Already Set To Open With A Monster Spike
- Groupon To Price At $20 Tomorrow
- And Now Another Analyst Says Groupon Is Worth Less Than The IPO Price…