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TECHNOLOGY => Computing and Internet => Topic started by: techieguy on Mar 02, 2012, 07:00 PM

Title: Yelp IPO Wants To Raise $107.25M At A $898.1 Million Valuation
Post by: techieguy on Mar 02, 2012, 07:00 PM
Tomorrow morning comes the moment Yelp CEO Jeremy Stoppelman's been waiting for seven years. According to the NYT (http://dealbook.nytimes.com/2012/03/01/yelp-prices-its-offering-at-15-a-share/), Yelp will drop on the NYSE under the YELP ticker tomorrow morning.

Yelp will be offering 7.15 million shares at $15 dollars a share, wanting to raise about $107.25 million in its IPO. The deal is said to be heavily over subscribed (https://twitter.com/#!/BobPisani/status/175321370429894656), and I've heard that some Yelpers were disappointed by the low price — despite the fact that the company is still not profitable and trading at a valuation of more than ten times its revenues.

While Yelp generated $83.3 million in 2011, it also operated at a $16.9 million loss.

Yelp will be the fourth in a series of high profile tech IPOs (http://online.wsj.com/article/SB10001424052970203986604577255452644418264.html), with Groupon, LinkedIn, and Zynga all debuting before it to mixed results. Industry giant Facebook is set to wreak havoc IPO in the spring.



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