Groupon said to be cutting back size of IPO

Groupon Inc., the world’s largest daily deals company, is planning a smaller initial public offering, according to three people familiar with the situation.

Groupon in June filed to raise up to $750 million in its IPO, making it one of the most closely watched offerings in recent years.

One source familiar with the situation said Wednesday that it was now planning to raise less than $750 million, but not significantly less. A second source familiar with the situation said it was now planning to raise about $500 million.

About 5% of the company will be sold in the IPO, a third source familiar with the offering said. The offering will value the Chicago company at between $10 billion to just over $12 billion, depending on how much the company raises, the source added.

The sources declined to be identified because they’re not authorized to speak publicly about Groupon’s financing plans. Groupon declined to comment.

Groupon’s latest IPO filing said that existing shareholders were no longer planning to sell stock in the offering.

Groupon is shrinking its IPO because equity markets have fallen and become a lot more volatile since June.

The company has also been criticized for its accounting, faces questions about the long-term viability of its business model and has lost two chief operating officers this year.

Groupon is expected to launch its IPO roadshow early next week, sources told Reuters on Tuesday.