Groupon is considering raising its IPO price as a result of strong demand, according to a report by Bloomberg News.After dropping some questionable accounting methods and dramatically lowering its valuation, it appears Groupon undervalued itself.
It’s also possible that was part of the company’s plan to spur interest, or that Groupon is now trying to prop its price back up by telling news outlets that demand was higher than expected.
In its last filing with the SEC on October 21, Groupon said it would price between $16 and $18. That gave Groupon a valuation of around $12 billion — lower than the $25 billion and $30 billion it reportedly expected when it first filed.
Groupon is basically break even after reporting significant losses in its early stages. It now employs around 4,800 sales people and has been growing swiftly.
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