Groupon CEO Andrew Mason
Groupon shares are down Tuesday after reports that merchants may soften participation with daily deal sites. REUTERS

Shares of daily deals site Groupon are coming very close to their initial public offering price.

By early afternoon trading, shares of Groupon were at $20.28, down 13.99 percent from its previous close of $23.58. In the day's trading, the shares fell as low as $20.03.

The company announced its IPO on Nov. 4 with a price of $20. On the first day of trading, shares jumped more than 30 percent to close at $26.11.

The stock has traded as high as $31.14, which it reached on its first day of trading.