Groupon is “reevaluating its plans to go public in the face of stock market volatility” and has canceled its roadshow scheduled for next week, according to the Wall Street Journal.
According to the unidentified “person familiar with the matter,” Groupon had intended to go public after Labor Day and announce its share prices in mid-September, but given falling stocks in particularly in international markets, decided to delay the IPO.
In addition, the source said, the SEC contacted Groupon last week to ask about a leaked employee memo written by CEO Andrew Mason. The SEC’s “quiet period” rules prohibit companies from making public financial statements during the IPO process. Wired had to pull its IPO in 1996 after publisher Louis Rossetto wrote a similarly optimistic employee memo.
A spokesperson for Groupon declined to comment.