IPOs for Dummies: Groupon Goes Public

We’ve all heard about Groupon’s big announcement today: they’re going public. But to be honest, we don’t really know what that means for us. To help get to the bottom of what one of Chicago’s fastest growing businesses is up to, we sought out answers from our local finance go-to. Here’s the scoop:

After one of the most anticipated IPOs of the year, Groupon joined the juggernauts of Chicago business with a $13 billion valuation (making it the 8th biggest company in Chicago!). The good news? The daily deals site is showing no signs of slowing down. Investors looking to get a piece of the pie have already pushed the stock above $26 per share, up 30% from its offering. And while the IPO is long overdue positive news for the economy in general, it's also a huge boost for Chicago business.

Ok, ok. Lots of information here, we know.

Confused by what the IPO means? Or what any of this means, for that matter? Or most importantly, what this means for YOU? Fear not, your daily deals on hot spots and fashion steals aren’t going anywhere.

Strong IPOs signal growth and momentum. As Groupon grows and rides this momentum, local businesses and consumers (aka, you!) should both reap the benefit. When the company decides to go back to the market and raise money, you can expect these funds to be put to use – meaning more innovative services will be offered (i.e. the recent roll-out of Groupon Deals).
Being headquartered in Chicago, this means many of the new services will initially be offered here, making us the lucky guinea pigs of all of the new features. Local businesses have more opportunities for promotion, meaning consumers get more deals thrown their way.

Whether you're a fan of promoting local businesses, or just saving money on lunch, this IPO should be considered good news for the Chi. Let's hope the optimism here continues for a long time (or at least until Facebook IPOs and takes over the world).