Square files for IPO

Square files for IPO

Jack Dorsey's payments startup Square has filed for an initial public offering as it prepares to list on the New York Stock Exchange.

The widely expected move comes a week after Dorsey confirmed that he is staying as CEO of the firm despite returning to Twitter in the same position.

The number of shares to be offered and the price range for the offering have not been determined for the IPO but the company will list on the Nyse under the ticker symbol 'SQ'.

Co-founded by Dorsey in 2009 as an mPOS provider that enables small business to use their mobile phones to accept card payments, Square quickly grew to become one of the biggest and most hyped startups in the fintech sphere.

The company has since moved into other areas, such as payroll services and capital financing and has raised hundreds of millions of dollars, valuing it in the billions of dollars.

However, things have not always run smoothly in the search for profits and in the first half of this year it posted a loss of $77.6 million, despite revenues of $560.6 million.

While Square grabbed the headlines, rival First Data priced its forthcoming IPO at $16 per share, off the expected $18-£20 target expected by investors. Despite the downgrade, First Data is expected to raise $2.56 billion in the float, making it by far the largest IPO of the year.

Comments: (2)

A Finextra member
A Finextra member 15 October, 2015, 02:56Be the first to give this comment the thumbs up 0 likes

Or perhaps "Evan Williams' payment startup Square, where Jack Dorsey is the CEO.."

A Finextra member
A Finextra member 20 October, 2015, 17:06Be the first to give this comment the thumbs up 0 likes

Square is a Fintech. I am sure Square will get a higher than deserved market cap when they IPO. The big question for them is "how" can they reach profitability and substain high revenue growth. Square will need to do something radically different than just leveraging the old legacy payment rails of Visa, MasterCard and Amex.