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 (NASDAQ:GRPN), LinkedIn (LNKD), and Zynga (NASDAQ:ZNGA) all debuting before it to mixed results. Industry giant Facebook (NASDAQ:FB) is set to
wreak havoc IPO in the spring.