YELP to Surge on its 1st Trading Day

March 5, 2012
On Friday (March, 2) Yelp Inc. (NYSE:YELP) entered the stock trading market.
On Thursday (March, 1) YELP announced its public offering of 7,150,000 shares of Class A common stock that would be available for public at $15.00 per share from Friday (March, 2).
On the first trading day the shares of YELP surged by 63.87% or $9.58 per share and closed trading at $24.58. The market capitalization of the company at the recent closing price amounts to $1.47 billion. This indicates that the company belongs to the upper segment of the group of small cap companies.
As far as the unusual jump on the first trading day is concerned, the analysts regard it as common phenomenon, especially when it comes to high-profile companies such as YELP.
The company is mostly known for its restaurant reviews, however, YELP attracts multiple users who are engaged in reviews of hospitals, clubs, hotels, high schools and other public facilities.
In 2011 the company booked revenue of $83.3 million, which showed an increase of 74% as compared to the previous year.
The trading volume of the company amounted to 17.51 million shares. All in all, the company has 59.87 million outstanding shares.
The total offering by YELP amounts to 7,100,000 shares. Furthermore, the total number of 50,000 shares are offered by a selling stockholder, The Yelp Foundation. Moreover, the underwriters are also offered an opportunity to purchase up to 1,072,500 additional shares from the company. According to the estimates, YELP is expected to gain approximately $111.2 million of net profit.
Yelp Inc., formerly known as Yelp! Inc. is a representative of the Printing and Publishing industry of the Services sector. The company is engaged in connecting people with a wide range of local businesses through a variety of free and paid services.
 
By Richard Evans

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