Online Daily Deals Site Groupon Files For IPO

June 6th, 2011 at 1:23 pm

With tech stocks recently becoming more popular, there are probably many tech companies who are considering going public in order to gain some much needed capitalization. It may also help increase the company’s value, depending on the level of interest it can garner from the investing public. One of those tech companies planning to go public is the daily deals site Groupon.

Groupon is reportedly filing its initial public offering papers at the Securities and Exchange Commission. The company is planning to raise an estimated $750 million that can be used for capitalization and development. The popular deals company has taken the services of Morgan Stanley, Goldman Sachs and Credit Suisse as its primary bankers. Information as to how many shares Groupon is planning to sell was not included in the said filing.

Groupon may be following on the heels of another tech company that recently held a successful IPO. LinkedIn, a social network site for professionals went public just two weeks ago and raised around $352 million during its IPO.

A relatively young company, Groupon has experienced some rapid growth that started sometime in 2009. From serving just 5 primary markets in North America, the daily deals company has grown to offer online deals in 175 North American markets as well as having some presence in 42 other countries. Starting with just 37 employees in 2009, Groupon now has an employee population of around 7,100 workers.

Groupon’s IPO filing may just be beginning for a number of tech IPO’s later on. Other tech companies are also mulling the idea of going public, considering that the level of interest for them is currently on a high. Many analysts say that there are many investors who are keenly on the lookout for tech stocks. This demand and the current public perception may further help keep tech stock values up, making it ripe for some of the more popular tech companies as a means to raise some much needed capital for growth. If this trend of tech company IPO’s continue to grow, then we might just be seeing another tech bubble growing steadily in our midst.


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