Groupon files for IPO, sets valuation at whopping $20 bn!

If I were offered $6 bn, I probably wouldn’t say ‘no’. Then again, I’m not at the helm of online deals company Groupon. And in retrospect, the decision to decline billions and billions of dollars seems to have been a good one.

Groupon filed for its IPO and the valuation could reach bn. To put this in perspective, LinkedIn reached a market cap of around $10 bn at the height of trading on its first day as a public company, and that was at more than double the price at the opening bell.

The Groupon S-1 has some pretty impressive numbers. The Wall Street Journal says that the company is probably looking to raise more than the $750 mn reported in the offering document. It’s Q1 revenues were $644.7 mn – catching up quickly with last year’s total revenues of $713.4 mn. This follows a two-year growth rate of 20,000 percent!

Though the company still isn’t in the black, it has plenty of reasons to be optimistic, aside from the insane growth rate:

  • 56,781 participating merchants
  • 83.1 mn-person subscriber base
  • 28.1 mn “Groupons” sold

The lead underwriters are Morgan Stanley, Goldman Sachs and Credit Suisse. The investors looking forward to the big day include Lightbank, Andreessen Horowitz, Battery Ventures and Digital Sky Technologies.

Source: Wall Street Journal, via IR magazine

 

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