Groupon founder and CEO Andrew Mason
Groupon founder and CEO Andrew Mason will promote the company's prospects to Wall Street in the next two weeks before the daily deal company takes its stock public with an IPO. But Mason will face quite a challenge, as prospects for Groupon's IPO have cooled. REUTERS

Deals site Groupon raised $700 million via its long-delayed initial public offering, leaving the Chicago-based company valued at $12.7 billion.

Shares first traded up 55 percent at $30.90 in midmorning Friday trading. They were at $27.95 after the first half hour of trading. Underwriters priced the issue at $20. Insiders sold only about five percent of their shares.

The IPO, delayed by a quarter's worth of criticism of its internal finances as well as a turbulent stock market, left Groupon's value priced substantially below its initial estimate of $20 billion.

Groupon will be among a handful of Internet-related IPOs so far this year, which have enjoyed mixed success. Social media site LinkedIn, now valued at $8.42 billion, has fallen seven percent since its May IPO. On Thursday, the site said it planned a secondary offering to raise another $100 million.

LinkedIn, based in San Francisco, also reported a third-quarter loss of $1.6 million on revenue that more than doubled to $139 million.

Groupon's IPO will set the company up as still another public site in retailing, battling long-established sites such as Google and

The underwriters are Morgan Stanley, Goldman Sachs and Credit Suisse.

Contact David Zielenziger at