Coupons.com stock soars 98% in first trading day
IPO values internet coupon business at $2.2B
Shares of Coupons.com are close to doubling in their first day of trading on the New York Stock Exchange.
The stock gained $15.71 US or 98 per cent, to $31.71 in afternoon trading.
The Mountain View, Calif., company had initially expected to offer 10 million shares and expected them to be priced between $12 and $14 per share.
Coupons.com said in a regulatory filing that more than 2,000 brands from more than 700 consumer packaged goods companies and many grocery, drug and mass merchandise retailers use its service. Last year the company distributed 315 billion coupons, with 2.8 billion redeemed.
Coupons.com said in its filing that it generated revenue from more than 1.3 billion transactions in 2013. That's up 43 per cent from 2012. However, it has not made a profit within the last five years.
Coupons.com is the third technology company to go public this year, after the successful debuts of Care.com Inc and Varonis Inc. And its warm reception shows investors are still hungry for tech stocks.
The IPO results value the company at about $2.2 billion US.
It plans to use the offering's net proceeds for general corporate purposes, including working capital, sales and marketing activities, general and administrative matters and capital expenditures.
The company said in its filing that it may also use part of the proceeds for the acquisition of, or investment in, technologies, solutions or businesses that complement its business. It may also use part of the proceeds to satisfy anticipated tax withholding and remittance obligations related to the settlement of its outstanding restricted stock units.
Coupons.com had 2013 revenue of $167.9 million, up from $112.1 million in the prior year.
The stock is trading under the "COUP" ticker symbol.