— Groupon is likely to delay its hotly anticipated initial public offering of stock, according to several published reports.
The daily coupon deals web site isn’t canceling its plan to become a public company but is taking another look at the timing “in the face of stock market volatility,” according to a report on The Wall Street Journal's web site.
The New York Times also reported that Groupon, which initially had planned to go public this month, is considering a delay due to market conditions.
Groupon filed paperwork for the IPO in June, when the Dow Jones industrial average was over 12,000. But since late July major market indices have shed about 12 percent of their value in highly volatile trading amid signs of a renewed global economic slowdown.
Groupon had planned a "roadshow" for next week to entice potential investors, but those plans have now been canceled and the coupon company is evaluating when to go public on a day-by-day basis, the Journal said.
In late July, CNBC reported that Groupon’s IPO could be delayed until mid- to late-September as federal regulators have raised questions about the company's self-selected financial metrics.
The company has several unique ways of measuring its success that have drawn scrutiny from some investors and now federal regulators, CNBC reported.
For example, Groupon reports non-standard financial metrics such as gross profits, a way of measuring its revenue, and "adjusted consolidated segment operating income," a measure that excludes certain expenses.
Groupon also may face questions about an internal memorandum from its chief executive, Andrew Mason, the Times reported. The memo, which promoted the company’s growth and strength against rivals, raised concerns about whether the company had violated the mandatory “quiet period” that applies to companies waiting to go public.
That may require an amended filing with the Securities and Exchange Commission.