Groupon Aims to Raise $540 Million in Downsized November IPO

[Waqas 48]

Groupon plans to raise between $480 million and $540 million in an initial public offering, or about two-thirds of the $750 million the not-yet-profitable company intended to raise in June.

According to regulatory documents filed Friday, the Chicago-based startup is prepared to sell 30 million shares — a little less than 5% of the company — for between $16 and $18 each, placing the company at a valuation range of $10.1 billion to $11.4 billion, reports Reuters.

It will arrive on the NASDAQ exchange under the ticker “GRPN” in early November (The Wall Street Journal says Nov. 4).

Groupon has faced some challenges over the last year, such as losing two COOs, a class-action lawsuit from sales team employees and scrutiny over its accounting practices and long-term growth prospects. It turned down a $6 billion acquisition offer from Google in June.

The company did report a stronger third quarter. Revenues were at $430.2 million, up 426% over the same period last year and 9.6% over the previous quarter. Losses totaled $10.6 million, a substantial improvement from the $49 million it lost the previous quarter. The makeup in losses is largely attributed to a lower marketing spend.

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