Groupon to Raise Up to $540 Million in IPO

Reports strong third-quarter earnings

Groupon’s IPO finally looks to be back on track as the company inches closer to profitability. Early this morning, the company filed a revised prospectus detailing its upcoming public offering, as well as strong third-quarter earnings that it hopes will silence skepticism about its business plan.

According to the filing, Groupon is seeking to raise between $480 million and $540 million, about three-quarters of the $750 million that it had estimated it would seek when it originally filed for its IPO back in June. The company, which will trade on the Nasdaq under the ticker “GRPN,” said that it is planning to sell 30 million shares at $16 to $18 each, which would value it somewhere between $10.1 billion and $11.4 billion.

The company’s third-quarter earnings showed a major increase in revenue, which was up 426 percent year over year to $430. Its net loss, which totaled $10.6 million for the quarter, was a considerable improvement from the previous quarter’s net loss of  $101.2 million and last year’s third-quarter net loss of $49 million.

Groupon also managed to turn an $18.8 million profit in North America, reversing the second quarter’s loss of $10.5 million in that market. According to a New York Times source, the company cut back on its marketing budget for the third quarter in order to help boost revenue.

This latest report comes as Groupon prepares its road show to drum up investor excitement for its IPO. Sources told the Times that the company, whose previous SEC filings had drawn criticism for their "creative" accounting metrics, had wanted to prove that it was close to profitability before it set off.