In a stark comedown for what was expected to be one of the hottest stock offerings of the year, Groupon Inc. is scaling back plans for its public debut.
The Chicago company and its bankers will begin meeting with investors in the next few days to sell them on a deal that values the daily deals pioneer at less than $12 billion, according to people familiar with the matter.
While that would still mark one of the biggest Internet IPOs since Google Inc. in 2004, it is well below the valuations that were bandied about when the company filed to go public in June.
Groupon’s IPO was originally expected to value the three-year-old company at between $15 billion and $20 billion, according to people familiar with the matter.
The change comes in the wake of recent market volatility as well as several missteps by the company, the people said. Regulators have been scrutinizing Groupon’s accounting and the company was forced last month to change the way it books revenue.