Groupon raised $700 million after the company’s Initial Public Offering (IPO) Friday, making it the second most successful IPO by a U.S. Internet company in recent years.
Groupon’s IPO ranks second only to Google, which raised $1.7 billion when it went public in 2004.
The success of the Internet coupon company’s IPO came after speculation the company may be in financial trouble following low earnings reportings and recent trouble with rival Google.
Groupon recently filed a lawsuit against two former sales managers it says took secrets from the company to Google Deals, a competing company.
Former employees Brian Hanna and Michael Nolan were named in the lawsuit by Groupon, which argues the duo took trade secrets with them to the rival Internet company.
"This information is not publicly available, but rather has been developed by Groupon over time through the use of analytical research and substantial experience-tested research and development. It has taken Groupon substantial time and the application of significant resources, and money to develop this best practices information and to continue to optimize it,” Groupon said in the case filing.
The lawsuit added to speculation the online company may be in financial trouble as it was about to go public.
Groupon, which boasts 143 million email subscribers, may be a risky investment because the business model is new and untested, Morningstar analyst Rick Summer previously said in reports.
The company, after its IPO is now valued at $13 billion. Shares are expected to trade at around $20, an increase from the previous estimates of $16 to $18.