Angie’s List Inc., the consumer-review website that went public in November, plunged to a record low after a ban was lifted on stock sales by some of the company’s biggest investors.
Angie’s List retreated 16 percent to $11.17 at the close in New York, the lowest since the company’s initial public offering on Nov. 16. The shares have slumped 14 percent since the IPO.
Investors holding 44 percent of common shares are eligible to sell stock as of today, the company said in regulatory filings. The Indianapolis-based company shows user reviews of plumbers, electricians and other service providers. Angie’s List shares may be pulled down by the results of Groupon Inc., which also relies on local businesses and has fallen 62 percent since its IPO the same month.
“Groupon took a tumble,” Sameet Sinha, a San Francisco-based analyst at B. Riley & Co., said in an interview. “It is seeing a sign of slowdown, and people are correlating that with a general slowdown in companies in the local business market.”
Groupon, the largest daily-deal website, plunged to a record low today after the company reported second-quarter revenue that missed estimates as economic weakness in Europe curbed online coupon sales. The shares retreated 27 percent to $5.51 at the close in New York, the biggest decline since the company’s November IPO.
Angie’s List raised $114 million in an IPO after pricing shares at $13 apiece, the top of the proposed range, and held a secondary offering May 15. Investors who sold stock in the follow-on offering include affiliates of Battery Ventures and Angie Hicks, who started Angie’s List in 1995, regulatory filings show.
Cheryl Reed, a spokeswoman for Angie’s List, declined to comment.