Groupon to scale back IPO | Technology | Crain's Chicago Business

(Crain's) ? Groupon Inc. is planning a small initial public offering as it tries to temper current market volatility.

Less than 10% of the company will be available to outside investors, according to a Wednesday Wall Street Journal report citing unnamed sources familiar with the situation. The IPO valuation is expected to be less than $12.5 billion, according to the Wall Street Journal's report.

The Chicago-based firm, which offers discount deals on products and services, said in June that it intended to go public after rebuffing an offer from Google Inc. Investor roadshows are expected to begin next week.

(See related story: "Groupon's growth slows sharply in Chicago, raising questions about IPO value.")

The Wall Street Journal report said Groupon did not want to cancel its IPO so will instead release fewer shares with the hopes that it can get a higher price in future public offerings.

Groupon in June filed to raise up to $750 million in its IPO. One source familiar with the situation said it is now planning to raise less than that amount, but not significantly less. A second source familiar with the situation said it is now planning to raise about $500 million.

The information is not public and the sources declined to be named. Groupon was not immediately available for comment.

(Reuters contributed to this report.)

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Source: http://www.chicagobusiness.com/article/20111019/NEWS08/111019799/groupon-to-scale-back-ipo

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