-- Online coupon seller Living Social has selected banks to underwrite a stock offering that will seek to raise $1 billion, CNBC reported on Friday.
The Groupon competitor tapped JP Morgan, Bank of America and Deutsche Bank to lead the offering, according to the report. Living Social has not yet filed paperwork with the Securities and Exchange Commission, but the reported size of the offering implies a valuation between $10 billion and $15 billion.
The planned IPO was first reported by CNBC last week. The announcement comes a month after No. 1 daily deal site Groupon filed papers for a stock offering expected to raise at least $750 million.
Deal-a-day websites like Living Social partner with small businesses to send subscribers a local offer each day. The deals are usually good for half off on restaurant meals, spa services or other goods.
The offers are expected to generate $2.7 billion in revenue this year, more than double last year's total, according to Local Offer Network, which collects and distributes deals from hundreds of sites.
Washington, D.C.-based Living Social had 24 percent of daily deal revenue in major North American cities in May, according to a recent study by daily deal aggregator Yipit. Groupon's share of the market slipped from 52 percent to 48 percent, the report found.
A Living Social spokeswoman did not immediately return a call seeking comment.