Home Groupon’s “IPO Baby” Could Be $9B Below Projected Value

Groupon’s “IPO Baby” Could Be $9B Below Projected Value

In an SEC filing earlier today, Chicago-based daily deals site Groupon announced that they plan to sell 30 million shares at $16 to $18 each. Groupon is raising between $480 million and $540 million, setting the company’s valuation at $11.4 billion. It will trade on NASDAQ as ‘GRPN.’

In its initial filing back in June 2011, Groupon expected to raise $750 million in its IPO.

The estimated valuation of $11.4B or less is far less than earlier estimates of $20B.

Morgan Stanley, Goldman Sachs and Credite Suisse are the lead underwriters.

Groupon critics argue that while the company is operating cash flow positive, it relies mainly on short-term cash from paying its merchants and needs more cash to fund its working capital.

Groupon rejected Google’s $6B acquisition offer nearly a year ago, in December 2010.

CEO Andrew Mason sent around an internal memo to his team on August 25 about this “IPO baby,” stating that “having seen the ultrasound, I can promise you it’s not one of those uglies.”

Mason and his team have released their roadshow video, and will be on-tour for the next two weeks.

Next week they will pitch that “IPO baby” to investors.

It’s due on November 4.

Image via paparutzi.

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.