Groupon is considering a delay to its long-awaited initial public offering, amid turmoil in the US economy. The online voucher firm had hoped to go public by the end of this month, but is studying market conditions and may push back the timing of the offering. A source told the Wall Street Journal that stock […]
Groupon is considering a delay to its long-awaited initial public offering, amid turmoil in the US economy. The online voucher firm had hoped to go public by the end of this month, but is studying market conditions and may push back the timing of the offering. A source told the Wall Street Journal that stock market volatility has convinced the company to postpone its IPO. The person clarified that Groupon isn’t pulling its IPO, but simply pushing it back. Other reports are saying that the delay is indefinite.
08/09/2011
Groupon was aiming for an IPO at a valuation near $30bn and had considered a roadshow for investors starting next week, which now appears to be cancelled.
Started less than three years ago, Groupon has emerged as one of the fastest rising start-ups in the technology sector. Its valuation has soared in the past year, turbo-charged by increasing sales and early takeover interest.
Groupon;s decision could affect the floatation plans of other high-profile technology firms, such as Facebook, rival Living Social and online gaming site Zynga.
The company has also been in talks with the US Securities and Exchange Commission over its IPO prospectus. A recent memo from its chief executive, Andrew Mason, may complicate that process. The memo to employees promoted the company’s growth and strength against rivals.
But it quickly found its way in the public sphere, raising concerns about whether Groupon had violated the mandatory ”quiet period” that applies to companies waiting to go public.
