Groupon's IPO Received Strong Backing from Hometown Crowd, Report Says
By Tricia Duryee
AllThingsD
November 15, 2011
We know Groupon’s founders and board members and significant stakeholders all made out well from the company’s public offering.
But what about the unknown investors? The ones who purchased the stock on the first day, or picked up a few days later?
To find out those answers, a San Francisco company called SigFig culled its database, which includes more than $20 billion in investment assets from its users, to get insight into how private investors actually fared from the daily deal leader’s IPO.
Today, Groupon’s stock is up 26 cents, or 1.1 percent, to trade at $24.33, which has stayed fairly constant after closing more than a week ago at $26.11.
Here’s what SigFig found:
- 22.3 percent of people who bought Groupon’s stock on the day it went public dumped the stock that same day.
- The average purchase price on day one was $28.17, or above the company’s $20 initial price. At one point, the stock went as high as $31.14.
- Even though Groupon ended the day up, almost two thirds (62.5 percent) of people, who sold off their stock on opening day, lost money. The average negative return was 3.3 percent.
- People showed hometown pride: The highest percentage of investors came from Chicago, where Groupon is headquartered.
- For those who bought and sold on day one, Groupon’s IPO performed better than Pandora, but not as well as LinkedIn. Those who flipped Pandora’s stock lost an average of 8.52 percent, but those who flipped LinkedIn’s stock made an average of 7.10 percent.
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