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RetailMeNot up 34 Percent on First Day of Trading

Shares of IPO, RetailMeNot (NASDAQ: SALE) are up more than 34 percent on its first day of public trading.

The provider of online coupons from more than 60,000 retailers, priced its 9.1 million share offering at $21 per share, raising $191 million for the company.

As the popularity of internet coupons soars, net income for the company rose more than 10 fold from 2010 to $26 million in 2012. Online coupons are expected to reach 100 million people by 2014–an increase of 8 percent over 2012 levels.

Analyst Tom Forte said that interest was high because the company concentrates on offering online coupons for national retailers instead of Groupon (NASDAQ: GRPN)’s model of focusing on local businesses.

“For RetailMeNot, they’re being a traffic driver to large-scale e-commerce sites and helping consumers find coupons for these sites. It’s an effective business model — they’re catching you on your way to your shopping choice with coupons,” he said.

[stock-tools exchange="NASDAQ" symbol="SALE" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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