Rumors have been going on since the end of October in professional interviews at places like Bloomberg and CNBC stating that the Groupon IPO price offering may rise by anywhere from $1 – $4 a share. This could push the Groupon valuation to anywhere from $12 billion to $13 billion depending on the price increase.
The original range of the Groupon IPO price was talked about being in the $16 to $18 range from the underwriters of the IPO, Credit Suisse, Goldman Sachs and Morgan Stanley. Financial analysts that cover the IPO market are stating that demand has increased before the underwriters closed their books and this was pushing up demand.
The pricing of the IPO for Groupon (NASDAQ:GRPN) is expected to be finalized late Thursday night with the official IPO NASDAQ price that will be released under the ticker GRPN. This is one of the most high profile tech offerings going through the IPO process in awhile and has even had bad coverage associated with Groupon’s issues like their accounting processes.
There are also professionals like Vivek Wadhwa which is the Director of Research at Duke University’s Center for Entrepreneurship that has come out and called the Groupon IPO a scam and an outright fraud to the public. Mr. Wadhwa says that the, “numbers were inflated by the secondary markets and that investor bankers were using the margins for their IPO pricing.” Mr. Wadhwa said the reasonable valuation could be, “maybe $2 or $3 billion given the fact that they have revenue and there is so much risk for the company.” You can watch the entire interview of Mr. Wadhwa here.
People on Twitter share their feelings about the Groupon IPO offering:
danprimack: Confused: If Groupon IPO is soooo oversubscribed, why has it not yet raised its offering range? Company clearly needs the cash.
jeff_epstein: Congrats to $GRPN – they will surprise ppl RT @sai: Groupon IPO set to price just above the current price range http://ow.ly/7hl98
adamostrow: Groupon’s IPO gets deeply discounted … as a Groupon – is.gd/YWLMj8
ForbesTech: Is Groupon Toast? As Groupon Preps IPO, Google And Startups Grab Merchants – http://onforb.es/tloup1
- CRAMER: Groupon’s An “Engineered” IPO — Buy It On The Deal And Then Flip It Instantly (GRPN) (businessinsider.com)
- Groupon IPO Dismissed By Barron’s: ‘This IPO Is One Deal To Avoid’ (huffingtonpost.com)
- Groupon IPO Holds Price at $16 to $18 a Share (blogs.wsj.com)
- Groupon to raise IPO pricing? (news.cnet.com)