Reduced Groupon IPO to Price Nov. 3, Trade the Next Day

Groupon is expected to price its IPO on Nov. 3 and trade the next day, a source says.

The Chicago-based daily deals could raise as much as $540 million, according to its latest SEC filing. Groupon said it planned to sell 30 million shares at $16 to $18 each via joint bookrunners Morgan Stanley, Goldman Sachs and Credit Suisse. The eleven other underwriters on the deal include Allen & Co., BofA Merrill Lynch and Barclays Capital. The underwriters have the option to buy an additional 4.5 million class A shares, the Oct. 21 SEC filing said.

Groupon is expected to trade on the Nasdaq under the ticker GRPN, according to the SEC filing. The company’s roadshow seen launching next week, according to Thomson Reuters.

At $540 million, the deal represents a 28% reduction from Groupon’s initial target of $750 million, which it filed to raise in June. The Groupon IPO, one of the most closely watched this year, has been dogged by bad press and accounting issues. Market volatility and European debt issues have also put the IPO market on standstill. The Groupon offering will likely set the tone for other companies looking to go public.

Andrew Mason, Groupon’s CEO, doesn’t appear to be selling shares and owns 7.7% of Class A stock and 41.7% of Class B stock before the IPO. After the deal, his total voting power will fall to 19.8% from 20.4%, according to the filing.

Groupon backers include New Enterprise Associates (14.6% of Class A stake), Accel Partners (5.5% of Class A), Kleiner Perkins Caufield & Byers, Greylock Partners, Battery Ventures, Maverick Capital, Maveron, Silver Lake Partners and Technology Crossover Ventures, according to SEC filings.