Austin-based RetailMeNot prices stock offering

Dec 12, 2013
Austin American Statesman

Austin-based online coupon company RetailMeNot said Wednesday night it has priced a follow-on stock offering at $26 per share


RetailMeNot said it is offering 2 million shares at that price, netting the company about $52 million. The company previously said the fund raised in the offering will go toward general corporate purposes, including possible acquisitions, capital expenditures or investments in technology development


The bulk of the offering — about 4.27 million shares — are being offered by company shareholders, including executives, directors and venture capital investors. Collectively, that portion of the offering would raise an estimated $109.2 million. Those investors also have an option to sell an additional 940,000 shares, the company said


RetailMeNot had raised $191 million through an initial public offering in July, and follow-on offerings are fairly common among newly public companies whose stock prices have fared well, in part because they provide an opportunity for pre-IPO shareholders to liquidate their equity investments. Those shareholders were previously barred from selling their shares by lock-up agreements with the IPO underwriters


Founded in 2009 as WhaleShark, the company has become the world’s leading online marketplace for coupon and consumer deals, largely by buying smaller websites. The company in 2010 bought RetailMeNot, an Australian company that runs one of the top coupon sites in the world


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