Square Sets Expectations for IPO

Nov. 9, 2015

Square Sets Expectations for IPO Square, a pioneer for small-merchant credit-card acceptance, said it expects a price range for its initial public offering of between $11 and $13 per share, which would yield a top-end valuation of $4.2 billion, according to an SEC filing. At the midpoint of that range, Square would expect to raise $372.6 million from the IPO.

During its last round of funding a year ago, the company was valued at $6 billion.  At least one expert said the discount the company seems poised to accept when going public may tell other highly valued companies what they might expect as they go through the same process.

Brendan Connaughton, chief investment officer at ClearPath Capital Partners, told Reuters in an interview: “It’s going to set the precedent for a fair amount of these unicorns, and sadly I think it’s going to be a Petri dish for some of the IPOs in 2016.”