Low-float IPOs

Selling a Sliver

In their IPOs, many Internet companies offer only a fraction of their equity to outside investors. Such a tactic helps support stock prices by keeping supply low. While Groupon's revenues have risen sharply, profits are elusive.

	Groupon	HomeAway	LinkedIn	Pandora Media	Zillow
	GRPN	AWAY	LNKD	P	Z
Recent Price*	$17.00	37.32	87.23	14.82	30.77
Change Since IPO	NM	38.2%	93.8	-7.4	53.8
Shares Offered In IPO (mil)	30	8.0	7.8	14.7	3.5
% of Shares Outstanding	4.7%	10.0	8.3	9.2	12.9
Market Value (bil)	$10.8	3.0	8.4	2.4	0.9
2011E Revenue (mil)	$1,900	227	506	272	62
2011E EPS	-$0.61	0.46	0.02	-0.06	0.13
*At midpoint of pricing range. E=Estimate.
Sources: Thomson Reuters; Susquehanna Financial Group; Morningstar