Ebates Said to Seek 2014 IPO Working With JPMorgan

Shoppers are loading up on Internet coupons heading into the holidays -- and investors will soon get their chance to do the same.

Ebates Shopping.com Inc., which offers online coupons and discounts to consumers, picked JPMorgan Chase & Co. to lead its initial public offering next year with help from Bank of America Corp., according to people with knowledge of the deal, who asked not to be identified because the information is private.

Online shopping jumped about 20 percent to a record on Cyber Monday last week, as consumers surfed the Web for post-Thanksgiving deals in lieu of hitting physical stores. More than 100 million adults in the U.S. will use digital coupons next year, up from 96.6 million in 2013, according to researcher EMarketer Inc. That spurred online couponer RetailMeNot Inc. to go public earlier this year and is generating growth at Ebates and rival Coupons.com Inc.

Advertising and consumer-related companies are lining up to go public after Twitter Inc.’s offering last month and the rally that followed. TubeMogul Inc., a maker of software for digital marketing, and The Rubicon Project Inc., an online ad company, have picked banks for IPOs, as has Internet-dating site Zoosk Inc., people familiar with the companies have said.

Ebates was founded in 1998. The San Francisco-based company offers discounts to more than 1,600 online stores, including Amazon.com Inc., Macy’s Inc. and Home Depot Inc. Members get paid back a percentage of every purchase they make each quarter.

Representatives from Ebates, JPMorgan and Bank of America declined to comment.

Ebates is backed by investors including August Capital, Canaan Partners and Foundation Capital.

RetailMeNot, based in Austin, Texas, has climbed 28 percent since its IPO in July and is valued at about $1.36 billion. The company and its shareholders filed earlier this week to sell an additional 6.27 million shares.

Before it's here, it's on the Bloomberg Terminal.