LivingSocial, the second-largest website devoted to daily coupons, is looking to select investment banks for an initial public offering that may value the company at $10 billion to $15 billion, a person with direct knowledge of the talks said.
The Washington, DC-based company is seeking to raise about $1 billion in an IPO and has been in talks with Barclays Plc, JPMorgan Chase & Co and Allen & Co to lead the offering, according to the person, who requested anonymity due to the private nature of the matter.
LivingSocial also has also been in talks with other banks for the IPO, which may happen by the end of the year, according to the person.
LivingSocial would follow internet companies LinkedIn Corp, Yandex NV and Renren Inc in raising money from public markets, as also larger rival Groupon Inc, which filed for a $750 million IPO on 2 June. LinkedIn, was the first major US social-media company to sell shares in an IPO and saw, its stock more than double in the first day it traded last month.
According to a study released today, LivingSocial claims 24 per cent of online daily deal revenue in top North American markets. The company gained 4 percentage points in May from a month earlier, even as Groupon lost 4 points, dropping to 48 per cent.
The companies offer users daily discounts on restaurants, hotels, events, and other goods and services. According to research firm BIA/Kelsey in Chantilly, Virginia, the daily deal market in US may generate $3.9 billion in US sales in 2015, as against $873 million in 2010.
LivingSocial counts amongst its investors Twitter Inc backer, Institutional Venture Partners, as also T Rowe Price Group Inc, Lightspeed Venture Partners, Revolution LLC, Grotech Ventures and US Venture Partners. In December, Amazon.com Inc invested $175 million in the company.