And so it begins. Groupon this morning published the expected price range of its shares, to be sold in an upcoming initial public offering, in an SEC filing.
The daily deals company plans to sell 30 million shares at $16 to $18 a pop, which would see Groupon raise between $480 million and $540 million. This would give Groupon a valuation as high as $11.4 billion.
As rumored yesterday, the Chicago company will trade on NASDAQ, under the ticker ‘GRPN’.
Groupon filed to raise $750 million in its IPO back in June 2011, but has since scaled down the offering substantially as many industry watchers have raised valid concerns about its accounting practices, the sustainability of its business model and the fact that the company has seen its share of executive departures recently. The market is also weak, overall.
There is one huge silver lining. The revised prospectus shows that Groupon is actually nearing profitability, as revenues are rising and marketing expenses are dropping.
The New York Times offers a detailed look on the company’s updated financials, which are suddenly looking remarkably strong. Who’d a thunk it? Andrew Mason, that’s who.
Perfect timing, too; Groupon’s IPO roadshow is expected to kick off next week.
