Groupon Case Summary

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The day before the registration becomes effective and sales begin, the offering is priced. The investment banker should recommend a price per share for management’s approval, taking into account the company’s financial performance and competitive prospects, the stock price of comparable companies, general stock market conditions, and the success of the road show and ensuing expressions of interest (Kuratko, 2017, p.432). The IPO is successful if the stock offered at a price higher than the stock trades on day one.

Groupon, Inc., offers goods and services from merchants at a discount to consumers. Groupon had priced its initial public offering at $20 a share and opened at $28.00, 40% above the target. Groupon raised $700 million. Groupon's

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