By Alexia Tsotsis
Yelp will be offering 7.15 million shares at $15 dollars a share, wanting to raise about $107.25 million in its IPO. The deal is said to be heavily over subscribed, and I’ve heard that some Yelpers were disappointed by the low price — despite the fact that the company is still not profitable and trading at a valuation of more than ten times its earnings.
While Yelp generated $83.3 million in 2011, it also operated at a $16.9 million loss.
Yelp will be the fourth in a series of high profile tech IPOs, with Groupon (GRPN), LinkedIn (LNKD), and Zynga (ZNGA) all debuting before it to mixed results. Industry giant Facebook (FB) is set to
wreak havoc IPO in the spring.