Chicago – Groupon, the Chicago-based daily deals company and chief rival of DC-based LivingSocial, is now planning a scaled-down initial public offering (IPO) that could value the company at around $12 billion – sharply lower than the $25-$30 billion that had been expected – The New York Times reported.

Groupon, which has local backing from Chevy Chase-based New Enterprise Associates (NEA) and Wizards and Capitals owner Ted Leonsis, is planning to pitch the IPO to potential investors during a road show next week.

The IPO could raise as little as $500 million, people with knowledge told The Times. Prospects for the offering have been hurt by a shaky stock market, as well as a recent restatement of the company’s financial data that cut its 2010 revenue by more than half.

This article was also published in Potomac Tech Wire.

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