Google-backed RetailMeNot Inc. has raised $191 million in its initial public offering.
This story first appeared in the July 22, 2013 issue of WWD. Subscribe Today.
The provider of online coupons was priced at $21 a share, at the middle of its $20 to $22 range, and sold 9.1 million shares. It quickly shot up 35 percent to hit an intraday high of $28.45 on Friday before closing at $27.70 in its first day of trading.
Shares of the company trade over-the-counter under the symbol “SALE.”
Filings with the Securities and Exchange Commission said net income for 2012 was $26 million, compared with just $2.3 million in 2010.
Its chief executive officer and founder Cotter Cunningham celebrated the IPO by ringing the Nasdaq opening bell at the Moody Theater in Austin, Tex., Friday.
The company was founded in 2007 and began operations in the digital coupon space in 2009. It includes as one of its investors Google Ventures, the venture capital arm of Google Inc. Other investors in its last round of funding in 2011 include J.P. Morgan Chase & Co.
RetailMeNot has under its umbrella mobile apps, plus Web sites in several countries that provide digital coupons. In the U.S., coupons recently available on the site include ones for Kate Spade, Target, Kohl’s, Macy’s, Sports Authority and Lands’ End. The listings contain information on how to activate the coupons, plus their expiration dates. Some offers are for $5 off shipping, while others could be a certain percentage off a single item or an extra percentage off a category, such as a summer clearance sale.
The company said it had more than 450 million visits to its sites last year, and that its mobile apps have been downloaded by consumers more than six million times.
The firm’s business model provides for it to receive a commission when a purchase is made from a coupon that is clicked on its site. One key difference between it and some of the other coupon sites, such as daily deal firms LivingSocial or Groupon, is that RetailMeNot’s offers are from national retailers versus local proprietors.