Concerns about the Groupon initial public offering, and a potential second internet bubble, have been growing since the announcement. The scale of the IPO itself continues to grow as well, however, as Groupon announced another 11 banks have been brought on as underwriters, according to Reuters.
Groupon first announced its IPO in early June with three underwriters: Morgan Stanley, Goldman Sachs and Credit Suisse. The IPO was listed at $750 million, though The Wall Street Journal reports that the company was expected to eventually raise that figure to around $1 billion.
The new underwriters include many more of the largest financial institutions in the world, including Bank of America Merrill Lynch, JPMorgan, Barclays Capital and Deutsche Bank Securities. These additions bring the total number of underwriters to four more than even Google used in its IPO.
Many have been wary of the company because it has yet to prove it can turn a profit, despite its remarkable growth. In early June, however, co-founder and chairman Eric Lefkofsky insisted the company would prove “wildly profitable,” according to Bloomberg. In response, Groupon has filed what amounts to a disclaimer against Lefkofsky’s statements, to keep in line with Securites and Exchange Commission rules on company disclosures before an IPO.