Square raises less than sought in IPO, testing valuations

Payments company Square enables card payments to be made using a dongle attached to a mobile device. | Photo courtesy of ada fruit/Flickr
Payments company Square enables card payments to be made using a dongle attached to a mobile device. | Photo courtesy of ada fruit/Flickr

Square Inc. raised about a third less than it sought in its initial public offering as investors balked at a higher valuation for the mobile-payments service founded by St. Louisians Jack Dorsey and Jim McKelvey.

Square and an existing shareholder raised $243 million, selling 27 million shares for $9 each, according to a statement distributed by Marketwired on Thursday, after offering them for $11 to $13 apiece.

The IPO price puts the company’s market valuation at about $2.9 billion, excluding options. The company received a $6 billion valuation in its latest financing.

Read more from Bloomberg


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