The Stanford University endowment and investors with Capital Guardian Trust, T. Rowe Price, Fidelity Investments and Morgan Stanley Investment Management as well as venture capital firms New Enterprise Associates and Accel Partners could gain big from Groupon Inc.'s IPO.
Groupon's IPO prospectus, filed June 2 with the SEC, listed the $14.5 billion Stanford endowment, Palo Alto, Calif., and the managers among investors in the company. The prospectus doesn't list a sale price or the ultimate amount it will seek to raise, analysts said.
Two of the largest Groupon investors are New Enterprise Associates, which owns 43 million class A common shares, or 14.7% of the stock, and Accel Partners, which owns 16.6 million class A common shares, or 5.6% of the stock, plan to sell an unspecified number of shares in the offering, according to the prospectus. New Enterprise bought its shares in 2008 through last year for about $14.9 billion and Accel, in 2009 for $20 million, according to the prospectus.
Stanford's endowment, whose assets are overseen by Stanford Management Co., owns 7,332 shares of series E preferred stock, which would be converted at a 6-to-1 ratio to 43,992 shares of class A common stock after the IPO, according to the prospectus. Stanford bought the shares for $50,000 in November 2009, according to the prospectus.
John F. Powers, Stanford Management president and CEO, said he couldn't comment about the Groupon holdings.
Capital Guardian's America Funds Growth Fund of America owns 5,539,730 series G preferred stock, acquired for $175 million in December, according to the prospectus. The shares would convert at a 2-to-1 ratio into 11,079,460 shares of class A common stock.
The America Funds March 31 report, however, shows a holding of 3,007,282 series G preferred shares and values them at $114 million, implying a common share price of $18.95 based on the 2-to-1 conversion.
Charles “Chuck” Freadhoff, media relations coordinator of Capital Guardian Trust, parent of America Funds, couldn't explain the discrepancy and said he couldn't comment on the Groupon IPO.
Mr. Freadhoff said Capital Guardian values non-publicly traded holdings based on a number of fair-value factors, including the cost of the stock, prices of similar securities and business developments of the company in question.