Groupon Inc is seeking an initial public offering valuation of about five times its projected 2012 sales, a source familiar with the situation said on Tuesday.
The offering would value Groupon at 11 times estimated 2013 earnings before interest, tax, depreciation and amortization (EBITDA) of just under $1 billion, the source said.
On Friday, Groupon unveiled plans to raise as much as $540 million in an initial public offering, less than previously planned, as it grapples with a weak equities market, executive departures and questions about its accounting and business model.
The daily deals website aims to sell 30 million shares, or less than 5 percent of the company, at between $16 and $18 each, according to a regulatory filing on Friday.
Earlier this month, the Chicago-based company reported third-quarter net revenue of $430.2 million.
The company, which competes with Google Inc and Amazon.com Inc declined to comment.
The news was first reported by Bloomberg.hhhhhhh