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RetailMeNot Raises $191 Million Pricing IPO at Mid-Range

RetailMeNot Inc. (SALE), a provider of online coupons from more than 60,000 retailers and brands worldwide, raised $191 million in its U.S. initial public offering, pricing its shares at the midpoint of the range.

The Austin, Texas-based company and shareholders sold 9.1 million shares for $21 each, according to a statement yesterday, after offering them for $20 to $22 apiece. The shares, accounting for 18 percent of the company’s outstanding stock, will begin trading today, listed on the Nasdaq Stock Market under the symbol SALE.

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The company, which operates RetailMeNot.com in the U.S. and VoucherCodes.co.uk in the U.K., entered the digital coupon industry in 2009 with a string of acquisitions. Backed by investors such as JPMorgan Chase & Co. (JPM), Austin Ventures and Google Inc.’s venture-capital arm Google Ventures, RetailMeNot has focused on growing its coupon base through international investment -- picking up sites like Actiepagina.nl in the Netherlands and Deals.com in Germany.

RetailMeNot completed its IPO as consumer interest in digital coupons is on the rise. The number of U.S. adults using Internet coupons is expected to reach 100 million by 2014, an 8 percent increase from 2012, according to a January eMarketer article. Net income increased more than ten-fold from 2010 to $26 million in 2012, according to regulatory filings.

The company will use proceeds from the offering, led by Morgan Stanley, Goldman Sachs Group Inc. and Credit Suisse Group AG, to fund more than $52 million in unpaid dividends for shareholders, filings show.

To contact the reporter on this story: Chelsey Dulaney in New York at cdulaney@bloomberg.net

To contact the editor responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net

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