Groupon gets its early morning pop.
FORTUNE -- Groupon (grpn) may be all about discounts, but it's stock is all about premiums.
The daily deals company saw its shares begin trading this morning at $28 per share. This comes after Groupon last night raised $700 million in its IPO, by pricing 35 million shares at $20 a piece (above its proposed $16-$18 offering range). In other words, it's already up 40%.
Not terribly surprising, considering reports that the offering -- which represents just around 5% of Groupon's total shares -- was 10x oversubscribed. In other words, many prospective IPO buyers either were shut out or allocated fewer shares than they had requested.
The question for the rest of today and Monday is whether Groupon will mimic LinkedIn (lnkd), whose price kept rising throughout its first day of trading, or Pandora (p), which popped before falling severely on its second day of trading.