IPO Buzz: Groupon files for IPO, Will the investors appetite continue?



Groupon, Online Coupon company filed for Initial Public Offering ( IPO ) in a latest series of social networking site IPOs offerings to tap US capital markets. Company will trade under the ticker of GRPN but price range and exchange was not disclosed. 





Groupon filed to raise up to $750 million in its IPO. However that figure is preliminary and could change.

In April, a source told Reuters that Groupon could raise as much as $1 billion in the IPO, which could value the fast-growing daily deals site at $15 billion to $20 billion.

A string of hot Internet companies including Facebook and Twitter have received multibillion-dollar valuations, raising questions about how these companies, albeit fast-growing, could justify the sky-high valuations.

Other Internet companies including LinkedIn Corp and China's Renren Inc have had strong IPO debuts in recent months, causing speculation that other companies would rush to follow.

Underwriters are being led by Morgan Stanley and Goldman Sachs.

"While we're looking forward to being a public company," said CEO Andrew D. Mason in a letter to potential stockholders. "We intend to continue operating according to the long-term focused principles that have gotten us to this point."

The letter also hints that the company is looking forward to "agressively investing in growth."

( Source: Reuters )
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