First Data's share price got off to an unspectacular start on the payment processor's market debut after it priced its initial public offering below the expected range.
Having priced its IPO at $16 per share, beneath the expected range of $18 to $20, the firm's stock suffered a modest dip in early morning trading before recovering to hover around the $16 mark by 11.00am EST.
The offering of 160,000,000 shares means First Data will receive net proceeds of approximately $2.5 billion after deducting underwriting discounts and commissions. The firm is valued at about $14.4 billion.
The money will be used to pay down some of the $20 billion of debt that was used to finance the 2007 buy-out when First Data was acquired by private equity firm Kohlberg Kravis and Roberts at the peak of the buy-out boom in a deal worth $26 billion.