Groupon reveals IPO plans

3rd June 2011

As reported on the Financial Times website (paywall) Groupon intends to "take advantage of investor interest in the next generation of social and e-commerce companies ".

Th IPO will be the second-biggest internet listing since Google in 2004.

Some Groupon investors have suggested that the company could be worth more than $20bn at the time of its IPO.

Group-backed online coupon sales is one of the most copied business models in history, the FT reports.

Groupon has its headquarters in Chicago and reported revenues of $645m in the first three months of 2011.

It had 83m as of March 2011 and sold 28.1m coupons in the first quarter of this year, compared with 30.3m in all of 2010.

However there are questions as to how the huge growth could ever be sustained.

Bloomberg reports that investors may want to be wary, not only has Groupon made $540.2 million in operating losses since 2008 it "has a business model "so easy to copy that it has spawned 482 imitators".

The fact is its sales still make it bigger than established technology companies like Citrix Systems Inc. (CTXS) and Autodesk Inc.

It may be that Groupon's daily offerings – it offers group discounts on clothes through to hotel bookings – may be where investors can get the best deal.

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