Groupon Files IPO, Expects to Raise $750 Million

Groupon announced Thursday its intentions to file for an initial public offering. The site says it preliminarily expects to raise $750 million.Groupon has seen some successes as of late: after only pulling in a little over $713 million in all of 2010, in the first quarter of this year it had already pulled in some […]

Groupon announced Thursday its intentions to file for an initial public offering. The site says it preliminarily expects to raise $750 million.

Groupon has seen some successes as of late: after only pulling in a little over $713 million in all of 2010, in the first quarter of this year it had already pulled in some $645 milion. This is a likely indication of the swelling interest in discount sites among consumers, and very well could be seen as a validation of Groupon and other's business model.

The company would likely trade under the symbol "GRPN." The number of shares to be made available, the price of shares, and date of the IPO have yet to be determined.

Revenue Growth Amazing

The Groupon S-1 numbers are really big:

  • $713 million revenue in 2010 but $420 million in losses
  • $645 million in revenue in Q1 2011 with $117 in losses

This year Groupon is on track to do nearly $3 billion in revenue. This puts the company easily in Facebook-revenue territory.

Given the astronomical growth of Groupon Google's nearly $6 billion rumored-offer for the company last year seems less outrageous than it did at the time.

No doubt, Groupon would like to replicate the success of LivingSocial. After announcing its own plans to go public last month, shares more than doubled in its first day of trading to $94. Since then, shares have leveled out to about $78, but thats still more than $30 above its IPO price.