Sources: Groupon Slashing IPO Size

According to a report

, Groupon is cutting back the size of its IPO, which was expected to raise around $750 million. According to sources, that number has now been adjusted down to around $500 million, and Groupon is initially planning on floating around 5% of the company. The offering is expected to value the daily deals site at between $10 billion and just over $12 billion. According to the company's IPO filing, existing shareholders are no longer planning to sell stock in the offering. The scaled down IPO could be a result of volatility in the equity markets as well as questions relating to the company's accounting practices and increased competition in the space. Groupon has lost two chief operating officers this year. As a result of the turbulence on multiple fronts, shareholders may be looking for a more favorable environment to cash in on their Groupon stakes, resulting in the scaled down IPO.