2011/09/07

Groupon reevaluating IPO plans: WSJ

NEW YORK, September  6, 2011 (AFP) - US online deals giant Groupon is reevaluating its plans to go public because of the volatility in the stock market, The Wall Street Journal reported on Tuesday.

The newspaper, citing a "person familiar with the matter," said Groupon is not cancelling its initial public offering but is reassessing the timing.

Groupon has cancelled a roadshow for potential investors which had been scheduled for next week, the Journal said.

The Chicago-based company had been planning to price its shares in mid-September, it said.

Amid the turmoil in the markets, Groupon executives decided to put the IPO on hold, the newspaper said.

Groupon declined to comment.

Groupon announced plans to go public in June seeking to raise as much as $750 million.

Groupon, which has enjoyed phenomenal growth selling discount coupons online since it was founded in November 2008, reportedly turned down a $6 billion takeover offer from Google last year.

Groupon reported a net loss of $102.7 million for the first quarter of 2011 on revenue of $644.7 million.