Will Groupon float boost the IPO market – MoneyWeek

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Successfulhigh-profileIPOshavebeenscantthisyear。

InMarchGoldmanSachsandEQTwereforcedtopullthe£1。

6bnflotationofISSinDenmark(expectedtobeoneofthebiggestinEuropethisyear)atthe11thhour。

ButthebankershadmoreluckwiththeUSIPOofsocialnetworkingsiteLinkedin,whichraised$353m。

Theshareshavesofarremainedabovethefloatpriceof$45,althoughtheyfellby9%afterthefirmannouncedaproposaltosellupto$500minstock,saysReuters。

com。

CommoditiestraderGlencore’sfloatgotawayontheLondonmarketinMay,raising$10bnbutthesharesarelanguishingbelowtheissuepriceof530p。

WiththesuccessofGroupon,willtheIPOmarketnowpickup?

It’sunlikely,saysLynnCowanonTheWallStreetJournalOnline:“investorsremainselectiveaboutwhichnewstockstheyarewillingtobeton”。

FertilisermakerRentechNitrogen’ssharesdisappointedlastweekontheirfirstdayoftradinginAmerica,despitemid-rangepricing。

WhiletherearenineIPOsduetodebutontheUSmarket,saysTheWallStreetJournal,“allareseekingtoraiselessthan$200m[and]nonehasthebuzzthatGroupongenerated”。

Ofthenine,onlytwoareexcitinginvestors–datasecuritygroupImpervaandAngie’sList,alocalbusinesswebsite。

Neitherareprofitable,butImpervaboastsblue-chipclientsandAngie’sListisa“recognisableconsumerinternetbrand”。

However,interestcouldbesparkedifonlinegamingdeveloperZyngalaunchesanIPObeforetheendoftheyear。

Thiswouldbeseenbyinvestorsasa“primedeal”。

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