Arab Today, arab today square aims ipo price below target range
Last Updated : GMT 15:48:02
Arab Today, arab today
Arab Today, arab today

Square aims IPO price below target range

Arab Today, arab today

Arab Today, arab today Square aims IPO price below target range

Square, founded by Twitter's Jack Dorsey
San Francisco - AFP

Mobile payments firm Square will make its stock market debut on Thursday priced lower than expected in a sign that soaring tech startup values may be coming back down.

Square said in a release that it will offer 25.65 million shares priced at $9 when it begins trading as a public company.

Another 1.35 million shares are being offered by the Start Small Foundation, a charitable fund created by Dorsey focused on struggling communities.

The offering values the San Francisco-based startup at about half the $6 billion valuation it got in its latest round of private funding.

Sales of the shares will raise $243 million.

Square, founded by Twitter's Jack Dorsey -- who is chief executive of both firms -- said in a regulatory filing early this month that it expected to price shares between $11 and $13.

That initial public offering (IPO) price range suggested a market value of just over $4 billion.

Some analysts have warned of a tech bubble in the private markets, with dozens of firms getting a value of over $1 billion -- "unicorns" in Silicon Valley parlance -- without enough scrutiny over their financial prospects.

Square, which started in 2009 by providing financial transaction software for smartphones or tablets along with free "dongles" that read magnetic strips on payment cards, is among prominent unicorns in startup-rich Silicon Valley.

Square "has been a highly anticipated tech IPO," said a note earlier this month from research firm PrivCo.

"It also comes at a time when the IPO market, especially for tech IPOs, has seen a dramatic decrease in activity due to economic uncertainty," the note maintained.

- Double-duty for Dorsey -

One major question for investors is whether Dorsey, who last month retook the reins at struggling Twitter, can effectively lead both companies.

The company plans to trade on the New York Stock Exchange under the symbol "SQ."

Regulatory filings showed a net loss in the third quarter for Square of $53.9 million on revenues of $332 million.

Square operates by taking a 2.75 percent cut on transactions using its mobile dongle and more for purchases entered manually on its mobile app. The company faces competition from other players, notably PayPal, which was spun off this year by eBay.

In addition to the United States, Square has operations in Canada, Japan and Australia and claims to have "millions" of users around the world, ranging from independent craftsmen who use its dongle to accept credit card payments to large chain stores.

- Fewer unicorns? -

A weak showing on Wall Street by Square could chill the surge in investment in tech unicorns, making private investors wary of putting billion-dollar valuations on unprofitable startups.

In the past quarter 23 unicorns were created -- including 17 in the United States -- bringing the total to 58 so far this year. According to CB Insights, there are 143 unicorns worldwide with a combined valuation of $508 billion.

Some startups have seen unprecedented valuations such as Uber at more than $50 billion and Airbnb at $25 billion.

Pricing for an IPO can be tricky, because Wall Street often likes to see a jump in the market debut. But a low price can hurt private investors who bought in at sky-high valuations.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today square aims ipo price below target range Arab Today, arab today square aims ipo price below target range

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 06:44 2017 Sunday ,26 February

Doubts grow over American stock market’s surge

GMT 06:26 2017 Sunday ,26 February

Copper recovers lost ground

GMT 15:53 2017 Saturday ,25 February

Bahrain Bourse daily trading report

GMT 14:28 2017 Saturday ,25 February

Gold hits 3.5-month high

GMT 03:11 2017 Saturday ,25 February

50 Tunisian exhibitors at Gulfood 2017, Dubai

GMT 02:19 2017 Saturday ,25 February

SIEL expo, March 1-4
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Reasons for the delay 'On the Stairs of Servants'

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday