The US e-comm giant has kicked off what could be a race to the IPO by internet start ups as it sets a date.
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Online couponing giant Groupon, announced yesterday that it has filed a registration statement with the US Securities and Exchange Commission proposing an initial public offering of its “class A” common stock.
The Chicago based e-dealer, which operates in Australia as Stardeals and has bases throughout the US and globally, and currently around 83 million subscribers, is looking to raise as much as US $750 million, according to reports.
The number of shares to be sold and the price range have yet to be disclosed although it has confirmed private shareholders will be offloading some of its stock.
Founded in just 2008, Groupon was widely tipped to follow hot on the heels of LinkedIn IPO, which was a roaring success when public trading kicked off earlier month with share prices soaring 109 percent above the initial asking price in the first day.
However, despite its well known brand, the company founded by Andrew Mason has experienced mixed fortunes of late, reporting a loss of US $102.7 million in the last quarter, spending millions on marketing grab for new subscribers in a retail space that has become increasingly crowded with the likes of Cudo, Deals and other all jumping on the same bandwagon.
It is “unusual and we like it that way” admitted Mason who is also currently CEO. “Life is too short to be a boring company,” he added.
And Mason is hoping his queer company will be regarded as another hot deal for investors alike.
“If you’re thinking about investing, hopefully it’s because, like me, you believe that Groupon is better positioned than any company in history to reshape local commerce,” he said.
Morgan Stanley, Goldman Sachs and Credit Suisse Securities will be in charge of the transaction.
Just on Wednesday it announced Groupon Getaways in a link up with online travel ace Expedia to give customers “deeply discounted, highly compelling travel deals from among the more than 135,000 hotels worldwide.”
