Groupon will price at $20 per share tomorrow, letting it raise about $700 million from its IPO.Kara Swisher at AllThingsD got the scoop. Earlier this week, other news sources suggested that Groupon was going to raise its IPO price by a buck or two over the originally planned $16 to $18.
Swisher also reports that the IPO was oversubscribed by 10 times, and that Groupon will add 5 million shares to bring the total to 35 million.
The real question is how long demand will remain that high once the stock is out of the gate. Just because it’s oversubscribed by 10x at a price of $20 doesn’t say how long demand will remain that high when the stock goes to, say, $25.