In the latest volley of news to come through the initial public offering channel, the much anticipated debut of payments processor Square could see a price range set this week, with an offering coming as soon as the week before Thanksgiving.
Reuters, citing CNBC, reported on Monday (Nov. 2) that the potential listing dates come via unnamed sources. The actual IPO became a reality once Square filed its IPO documents with the Securities and Exchange Commission last month for a nominal or placeholder amount of $275 million. That amount typically will change once true activity to go public takes place.
But a real pricing range will come as Jack Dorsey, the company’s chief executive officer, and other executives gauge interest from potential investors via what is known on Wall Street as a "roadshow."
CNBC said the IPO roadshow for Square could begin as early as next week.
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As has been widely reported, Dorsey, who also heads Twitter, still is the center of controversy and debate as to how he will split his time between the two companies. In the meantime, reported Reuters, Rapid Ratings, a service that assigns scores and ratings to the relative strength of the financials put up by companies, assigned Square a 41 out of 100. The 100 rating, said the newswire, is a score given to the "most fiscally sound” companies. Square's rating falls into the “medium risk” designation, due to a sliding operating earnings profile and a debt load of more than $350 million.
In reference to the actual listing, Reuters noted that the company is likely to list on the New York Stock Exchange through the initial symbol SQ. Among the underwriters for the as-yet-undefined offering: Morgan Stanley, Jefferies and Goldman Sachs and Co., among other firms.
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