Groupon Plans to Trim IPO Size

October 20 00:00 2011

New York, October 20 ( – Groupon plans to reduce the IPO size to lesser than its June filing of a $750 million request. One source said that the trimming will not be significant whereas another source said that the company is now planning to raise $500 million. There were no comments from the company.

A third source says that about 5% of the company will be sold at the IPO and the Chicago company will be valued between $10 billion and just over $12 billion, depending on how much can be raised at the IPO. The latest IPO filing by Groupon said that existing shareholders were no longer planning to sell stock in the offering. The reason for shrinking the IPO is that the equity markets have fallen and become a lot more volatile since June.

There has been frequent criticism regarding the company’s accounting, the long-term viability of its business model, and the loss of two chief operating officers this year. Sources revealed on Tuesday that an IPO roadshow early next week is being organized by Groupon.