Shinsei Associates - Demand For Groupon IPO Rises.

FOR IMMEDIATE RELEASE
Tucson, Arizona, United States of America (Free-Press-Release.com) January 24, 2012 -- The largest Wall Street IPO in months is almost upon us and Shinsei Associates believes that Groupon is poised to price it 1-2 dollars above its current range of $16-18, as a result of the strong demand generated by the coupon offering websites CEO and his team. They have spent the last few weeks drumming up support, pitching investors and answering critical questions.

Shinsei Associates analysts just don’t believe the company’s fundamentals are justifying the hype or the high valuation. Shinsei Associates calculations value Groupon between $8 and $9 billion, meaning the share price should be in the range of $13 to $15. A price of $18 would value the company at $11.5 billion.

Groupon’s website offers group based discount coupons for businesses and takes a fee from the revenue generated through the program. While Groupon has become very popular with consumers and businesses alike, it has failed to turn a profit and has experience some choppy waters in its accounting and in senior management positions.

Despite the demand, analysts at Shinsei Associates expect to see investors flipping the stock on the first day, but the expected price increase will not endear the IPO to many seasoned investors. The IPO is still likely to be oversubscribed.

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