Stock in Coursera began trading with a double-digit gain after the online education company late Tuesday priced an initial public offering at the high end of the range investors had been told to expect. The stock opened for trading on March 31, 2021, at $39, up about 18% from the offering price of $33. (Source)
Any individual owning stock purchased or received directly from Coursera could be eligible for the QSBS 100% capital gains tax exclusion or the Section 1045 gain rollover.
Coursera went public on March 31, 2021, with a valuation of $4.3 billion. The IPO price was $33 and the adjusted closing price the day of the IPO was $45. The QSBS gains would be capped at the original price the QSBS was sold.
One factor we are sure of is the Company was incorporated in 2011; therefore, if you are a stockholder you could qualify for 100% in tax savings. Check out a few other details we have already hashed out for you below:
Description: Coursera partners with more than 200 leading universities and companies to bring flexible, affordable, job-relevant online learning to individuals and organizations worldwide. Coursera offers a range of learning opportunities—from hands-on projects and courses to job-ready certificates, career credentials, and degree programs.
Incorporation Date: Incorporated in 2011 as a Delaware C Corporation, which is a qualified legal entity for QSBS
Liquidation event details: The Company’s early-stage financing is not publicly available, but the Company recently raised $2.15 billion in its IPO.
QSBS Potential: The Company is an education technology company, which is a qualified QSBS industry. The Company was founded after 2010; therefore employees and early investors could qualify for the 100% QSBS exclusion. It is unknown when the Company went over the $50 million asset test, but the Company’s first single financing over $50 million was in mid-2017; therefore, it is safe to assume that all stock before this date could qualify as QSBS. There is a strong likelihood that stock issued in Coursera could qualify for QSBS, assuming no redemptions and the Company meets the active test.
If you obtained shares in Coursera between 2011 to 2017, please contact us to evaluate your potential QSBS eligibility.
Here is a case study on QSBS treatment for stakeholders in the notable Beyond Meat IPO.
*Remember the Company’s valuation has nothing to do with the aggregate gross asset test of $50 million*
This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.