Square sets conservative IPO price range

Square says it expects to price its initial public offering at between $11 and $13 per share, valuing Jack Dorsey's payments startup at up to $4.2 billion.

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Square sets conservative IPO price range

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The price would see Square raise up to $403.7 million, considerably more than the $275 million cited in initial regulatory filings.

However, it also represents a 30% discount on the $6 billion valuation given to the company at the time of its $150 million series e funding round in October 2014.

The conservative valuation reflects the fact that, despite revenues of $560.6 million, Square posted a loss of $77.6 million in the first half of the year. There is also concern about Dorsey's dual role following his return as Twitter CEO.

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Comments: (1)

Hitesh Thakkar

Hitesh Thakkar Technology Evangelist (Financial Technology) at SME - Fintech startups (APAC and Africa)

Apart from above, Square 's business model and target customers are small merchants which brings thin margins, competition and deal with Starbucks are also affecting the bottom line.

Ofcourse, last few quarter moves are merchant friendly.

Hope to see FinTech pioneer comes to street and win confidence.

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