Chicago based Groupon Inc share price fell below its IPO price for the first time, Its been a difficult week for Groupon on the stock market, shares in the company fell below its $20 IPO price for the first time since going public earlier this month. On Friday Groupon shares slowed, but the shares lost another 1% to close at $16.75 in mid-day trading, ending the week down 36%. Thats well below Groupon’ IPO price of $20, which was set earlier this month. The massive fall made Groupon shed one-third of its market value since Friday’s close to wipe out nearly $6 billion in shareholder wealth. Last week Groupon shares was high as $26.19 but shares declined Monday, Tuesday and Wednesday. Chicago giants Groupon raised $700 million from its IPO, It was the largest IPO by an American Internet company since Google raised $1.7 billion back in 2004.
Speaking Nytimes about Groupon’s share price drop “Selling begets selling,” said Paul Bard, a director of research at Renaissance Capital, an I.P.O. advisory firm. “In the environment we’re in right now, investors are wary of risk, and so these less-seasoned companies will naturally face more selling pressure.”
