On the heels of hot initial-public-offering (IPO) deals for LinkedIn Corp. (NYSE: LNKD) and Yandex NV (Nasdaq: YNDX), new developments involving daily-deals site Groupon Inc. and casino joint venture MGM China Holdings Ltd. have bolstered an already-bullish IPO outlook.
The Chicago-based Groupon, just filed its Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC). Groupon, an e-commerce player that offers discounts ("Groupon" rhymes with "coupon"), will trade under the ticker "GRPN."
The company posted a loss of $456 million, or $2.66 a share, on revenue of $713 million for all of 2010. It lost $147 million, or 95 cents a share, in the first quarter of this year. But revenue for the first three months of this year alone was $645 million.
Groupon operates in 43 countries, and is in 175 markets in North America.
MGM China Holdings – a joint-venture (JV) deal between MGM Resorts International (NYSE: MGM) and a daughter of Macau gambling tycoon Stanley Ho, this week finalized a $1.5 billion IPO in Hong Kong. The shares rose 1.8% early today (Friday) on their first day of trading in Hong Kong – even as the benchmark Hang Seng Index declined 1.3%.
The company went public at $1.97 ($15.34 in Hong Kong dollars), rose as much as 5.6% to trade at $2.08 ($16.20HK) and closed at $2.01 ($15.62HK).
According to a report in The Wall Street Journal, Macau overtook the Las Vegas Strip as the world's biggest gambling market in 2006 and analysts expect gambling revenue in the Chinese territory to grow to five times the size of the Strip's this year. In May alone, gambling revenue totaled $3 billion – an increase of 42% on a year-over-year basis.
However, MGM China is the last of Macau's six casino operators to be listed as a public company, The Journal reported.
For a detailed analysis of the current IPO outlook, check out a special two-story package that Money Morning published this week. The stories, which appeared over two days, consisted of:
- An overview of the IPO market that was written by Money Morning's resident tech expert David Zeiler: IPO Market Perking Up, But Still Not Ready to Party Like It's 1999.
- And an analysis of LinkedIn's prospects that was written by Money Morning Managing Editor Jason Simpkins: Hot Stocks: Why LinkedIn Is More than Just a "Bubble."
News and Related Story Links:
- The Wall Street Journal:
UPDATE: MGM China Shares Finish 1.8% Higher On Debut Vs HSI's 1.3% Fall.
Groupon Files IPO: Revenue Soars, Deep Losses.
- Securities and Exchange Commission:
Groupon Inc. Form S-1 Registration Statement.