Groupon Files to Raise $540 Million from its IPO

October 21 00:00 2011

New York, October 21 (RainbowNewsLine.com) – Chicago-based Groupon Inc., the largest online-coupon site, is offering 30 million shares of Class A common stock at $16 to $18 each as it filed to raise $540 million in its initial public offering. This is a climb down from its filing in June when it planned to raise $750 million. The stock will trade on the Nasdaq Stock Market under the symbol GRPN.

Since the time that it filed for going public, Groupon has drawn regulatory scrutiny, restated results and lost executives. Reliable sources report that Groupon had delayed the public offering in September because of the fluctuating stock market and because it needed extra time to make necessary revisions to a controversial accounting method used in its prospectus.

As early as October 24, the company is planning to meet with investors to assess the demand for the IPO. This process normally takes about two weeks for completion of an initial offering.

High volatility and slumping stocks have been discouraging companies from bringing offerings to the market. Groupon’s IPO would be the fourth in the US since the beginning of September although many companies have continued to file for offerings this year, leading to the biggest US backlog in a decade as of the end of last quarter.

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