Groupon raises $700 mn; valuation rises to $12.7-bn

Groupon Inc, raised $700 million in its initial public offering, valuing the world's largest online daily deals company at about $12.7 billion.

The Chicago-based company raised 30 per cent more than it originally sought, although analysts expected a lukewarm response to its IPO due to market turbulence and the ongoing European sovereign debt crisis.

The IPO was set late yesterday at $20 per share, above the anticipated range of $16 to $18.

Groupon's $12.7-billion valuation makes it the second biggest internet company to make a market debut, behind Google, which was valued at $23.1 billion in 2004.

Groupon increased the number of shares it was selling to 35 million shares from 30 million shares, which is only about 5 per cent of the company.

Groupon will start trading today on the Nasdaq, under the ticker symbol GRPN.