Groupon IPO Postponed

September 7th, 2011 at 1:56 pm

It was previously reported in June that daily deals site Groupon has filed for its Initial Public Offering with the US Securities and Exchange Commission, the first step towards becoming a publicly listed company. It was surrounded by much excitement as it followed on the heels of other recent tech company IPO’s that were largely regarded as successful. But recent news state that Groupon may be postponing its scheduled IPO for the meantime, largely due to the current volatility in the stock market.

It seems that the current scenario in the stock market just don’t make it quite ideal for holding an IPO just yet. As exciting as such news may be, the recent turmoil that the market is currently facing amid mixed economic signals may hamper IPO plans and setting the right pricing for its stocks. Currently, many investors may be wary of trying to let go of their capital funds just yet and invest. The market conditions may not yet be that ideal for welcoming new IPO’s for the moment.

With investors largely trying to keep a tight hold of their investment funds for now, it may be a wise idea for Groupon to hold off its IPO. With the company being expected to hold a $750 million IPO, its value is reported to be between $20 billion to $25 billion. But with the uncertainty in the stock market due to the dire global economic conditions, it may hit certain snags if Groupon continues with its IPO as scheduled.

With a stock market that is mostly fueled by investor perception, it pays to hold an IPO if investor hopes are up and on the positive side. Groupon’s plans to go public may be postponed for now. And when it may finally hold its much regarded IPO will depend on how long it will take until the markets stabilize. And it seems that it is not only Groupon that may be under the same situation. Social gaming company Zynga may also be following suit, possibly postponing its own IPO after announcing its own plans to go public early this year.


Tags: , , , ,