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Shares of RetailMeNot charge up after IPO

Shares of the newest IPO on the Nasdaq, RetailMeNot, charged up more than 30 percent above its offering price of $21 in its first hours of trading Friday.

(Click here to see how the stock is trading now)

The company, sold under the ticker SALE, is looking to change the way consumers find deals, working with some of the country's biggest retailers to bring couponing into the 21st century.

The Austin, Texas-based company is a major player in the digital coupon industry, which provides consumers with an easy way to search promotional and coupon codes for use either online or in-store. The company offers a number of sites internationally, with operations in Canada, the United Kingdom, Germany, the Netherlands and France.

"We ultimately offer value to the consumer," CEO Cotter Cunningham told CNBC's "Squawk on the Street" on Friday. "Consumers love saving money; we help them to do that." Cunningham estimates that his company saves consumers approximately $20 per purchase made through his company.

RetailMeNot should be distinguished from Groupon, he said. "They help small companies give big discounts sporadically. We help big businesses give small discounts every day."

Cunningham said his company works with 90 of the top 100 Internet companies and offers a mobile product that highlights sales in physical stores using geolocation. He said that in his four years at the company, it hasn't lost a significant retail customer. He said the company draws about 40 percent of its traffic from mobile devices.

RetailMeNot raised approximately $191 million in its IPO on Friday and according to the company's S-1 filing, it intends to use $44.9 million of the proceeds to "pay accumulated and unpaid dividends on our outstanding shares of preferred stock."

According to the filing, RetailMeNot's portfolio of websites generated 450 million visits in 2012, generating $141.6 million in revenue and $25.9 million in net income over that period.

— By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from "Squawk on the Street" @ToscanoPaul

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GROUPON
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SALE
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