Groupon IPO seeks $11.4bn valuation
Price range of $16 to $18 a share confirmed
Groupon confirmed in a regulatory filing today that it is seeking an IPO of around $11.4bn, significantly lower than the $25bn IPO the e-coupon site was pursuing in June this year.
The company is offering 30 million shares of Class A common stock at $16 to $18 each, which means Groupon could raise as much as $540m, or $260m less that it sought earlier this year.
The $11.4bn valuation is based on $632.8m outstanding share after the IPO.
Groupon, which is based in Chicago, was criticised for a strange accounting metric in August that appeared to make daily-deals website look more profitable than it was.
It duly pulled the metric, by only after analysts began to question whether the online voucher market had legs.
In the US Securities and Exchange filing, Groupon boss Andrew Mason asked investors to back his firm.
"If you're thinking about investing, hopefully it's because, like me, you believe that Groupon is better positioned than any company in history to reshape local commerce," he said, while presumably hitting the hyperbole button on his keyboard.
"The speed of our growth reflects the enormous opportunity before us to create a more efficient local marketplace. As with any business in a new industry, success for our investors is not guaranteed.
"We have yet to reach sustained profitability and we have no shortage of competition. Our path will include some moments of brilliance and others of sheer stupidity. Knowing that this will at times be a bumpy ride, we thank you for considering joining us."
A fool and his money are...
a) soon parted
b) good news for worthless social media startups
c) going to ride the gravy train because Groupon are the Next Big Thing (TM) and viable business models are for losers
Mark all answers which apply
What is the world coming to?
My first -- and last -- visit to Groupon was as a result of this article.
I despair that they think they're valued at this amount. Endless tat in no particular order; demands for one's email address... A business plan in search of idiots.
I obviously don't get it.
There is nothing unique about what groupon delivers. Anyone buying this stock will only prove the old adage 'a fool and his money are easily parted'.
Besides which, if they waited around long enough, I'm sure they'll get an email offering them the same product with 60% off...