Jack Dorsey is restoring a few momentum to Twitter, but it’s not rubbing off on the other company he runs.
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Square Inc. plans to offer just over 31 million shares at a maximum of $13 apiece for total value of up to $403.7 million. That consists of about 4 million shares put aside for underwriters. The company has been approved to list its stock on the New York Stock Exchange, under the ticker symbol “SQ”.
Square’s most recent investors, for instance, were guaranteed a 20% return on their investment, according to the IPO filing.
A number of companies have recently cancelled IPOs, or scaled back their expectations, fearing malaise in US markets.
Since its founding, Square has added new operations like financing for small companies and a cost service generally known as Square Cash that lets people and companies switch funds to one another. It also operates Caviar, a food delivery service for restaurants. 6 million for the primary half of 2015 and has warned which will proceed to generate losses because it invests to increase.
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It expects to raise more than US$403mln (at the top of the price range), compared with the initial target noted in October’s filing documents. The company said sales rose 54% last year to $850.2 million and are on a pace to exceed $1 billion this year. Square’s revenue is growing quickly, but the company still is generating large losses. If it doesn’t hit that, it will issue additional stock to the latest investors on the day of the IPO to make up for the gap in price.
