RetailMeNot sets follow-on stock offering

Dec 3, 2013
Austin American Statesman

RetailMeNot, the Austin-based online coupon company that raised $191 million through an initial public offering in July, plans to raise up to an additional $75 million in a follow-on offering, according to a document filed Monday with the U.S. Securities and Exchange Commission

In the filing, the company said the offering aims to raise at least $200 million, but the bulk of those proceeds will go to insiders — including executives, directors and venture capital investors —who choose to sell from their current holdings. The firm said the $75 million it expects to reap would go toward general corporate purposes, including possible acquisitions, capital expenditures or investments in technology development

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

Among the firms and individuals eligible to sell shares as part of the offering, Austin Ventures stands to earn the biggest windfall. The firm, which was RetailMeNot’s initial venture-capital investor, holds more than 12 million shares and is the largest single equity holder in the company

Other notable beneficiaries include RetailMeNot CEO Cotter Cunningham, who holds almost 1.4 million shares, and Google Ventures, which holds 2 million shares, according the filing

As is usual for early statements in a public offering, the company did not include the price at which each share would sell. That price will likely be determined in the weeks to come. However, RetailMeNot’s stock closed daily trading at $30.45 on Monday, an increase of $1.78 — more than 6 percent for the day

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

The company changed its name to RetailMeNot in March

RetailMeNot’s annual revenue grew 80 percent in 2012 to $144.7 million. In 2011, the company raised $150 million to expand its online network of coupon and deal websites, bringing its total venture capital raised to $300 million. Investors included Austin Ventures, Google Ventures and J.P. Morgan Asset Management. The company had about 245 Austin employees as of July

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