Punch line: Groupon’s IPO was originally expected to value the three-year-old company at between $15 billion and $20 billion … now, the company is talking $12 billion … still a huge deal, but heading south
In a stark comedown for what was expected to be one of the hottest stock offerings of the year, Groupon is scaling back plans for its public debut.
The Chicago company and its bankers will begin meeting with investors in the next few days to sell them on a deal that values the daily deals pioneer at less than $12 billion.
Groupon’s IPO was originally expected to value the three-year-old company at between $15 billion and $20 billion, according to people familiar with the matter.
The change comes in the wake of recent market volatility as well as several missteps by the company, the people said. Regulators have been scrutinizing Groupon’s accounting and the company was forced last month to change the way it books revenue.
Groupon plans to conduct its road show for investors next week.
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The size of the stock sale, expected to be completed in the next two weeks, could be $500 million to $700 million.The small offering, which would represent well under 10% of the company’s outstanding shares, is meant to cut the amount of stock being sold, in hopes that more shares can be sold later at higher prices
As we’ve said before, these guys will rue the day they turned down Google’s $5.5 billion offer …
The Homa Files 
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