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Square files for IPO

2015-10-15 09:20:00| Telecompaper Headlines

(Telecompaper) Mobile payments provider Square has filed with the US Securities and Exchange Commission for an initial public offering of shares on the New York Stock Exchange. While the company has yet to set a price range for the share sale, for the purposes of paying a registration fee to the SEC it set the maximum proceeds from the IPO at USD 275 million. The company has no immediate plans for the proceeds and sees the IPO as a way to create a market for its stock. Started in 2009 by Twitter co-founder Jack Dorsey, Square offers a system for small businesses to accept card payments using a smartphone. Dorsey is still the largest shareholder with 24.4 percent of shares and is expected to reduce his stake in the IPO. After selling the software and hardware for a nominal fee, Square receives a small commission on each transaction using its system. Square generated revenues of USD 560.6 million in the first half of this year, up 51 percent from a year earlier, while its net loss was little changed over the same period, at USD 77.6 million versus USD 79.4 million a year ago. Adjusted revenue, which excludes its payment processing agreement with Starbucks, totaled USD 276.3 million last year, an increase of 73 percent from the prior year. Square said it expects to end the agreement with Starbucks within the next year. 

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Category:Telecommunications

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