Groupon's planned initial public offering (IPO) procedure is on track. However, in a regulatory filing, the company cited that owing to the largest daily deals company grapples with a weak equity market, executive departures and questions about its accounting and business model, it plans to raise $540 million through IPO, less than previously planned. In June, Groupon had filed to raise $750 million in its IPO.
Groupon plans to sell 30 million shares at between $16 and $18 each, the filing said. That means the company aims to raise $480 million to $540 million from the IPO, depending on investor demand. However, few analysts are dodgy over investment in this bargain website and have even questioned the long-term viability of business as company changed its accounting twice under pressure from investors and regulators, also lost two chief operating officers this year.
Earlier, Groupon had resolved the dispute with Securities and Exchange Commission (SEC) regarding a memo to employees from chief executive Andrew Mason. The company had been planning to price its shares in mid-September but decided to put the IPO on hold amid market turmoil.
The Chicago-based bargain website was launched on November 2008 by current CEO- Andrew Mason. Groupon features a daily deal on the best stuff to do, see, eat, and buy in 43 countries. The company has about 7,000 employees working across Chicago headquarters, a growing office in Palo Alto, CA, local markets throughout North America and regional offices in Europe, Latin America, Asia and around the world.
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