October 15, 2015
San Francisco-based payments startup Square Inc. has filed for an IPO with US regulators. Founded in 2009 by Jack Dorsey, CEO of Twitter Inc., Square Inc. offers financial services, credit card reading/swiping devices and technologies, and payments solutions to businesses and individuals.
The company has not disclosed the number of shares to be offered and the price range for the offering. According to the filing, company’s founder Jack Dorsey holds the maximum percentage of shares which is approximated to be 24.4%. Khosla Ventures is the second largest stakeholder with 19.3%, followed by Co-founder James McKelvey with a 9.4%, followed by JPMC Strategic Investments, Sequoia Capital and Rizvi Traverse, each with 5.5 %, 5.4% and 5.4% equity respectively.
According to company’s press release, it intends to list its common stock on the New York Stock Exchange under the ticker symbol SQ.
Jack Dorsey was recently named as permanent Chief Executive Officer of Twitter. The dual role of Dorsey is raising concerns for many. (The dual role) may at times adversely affect his ability to devote time, attention and effort to Square, the company said in the risk factors section of its filing with the US Securities and Exchange Commission.
As stated in the company’s press release Goldman Sachs, Morgan Stanley and JPMorgan are acting as lead joint book-running managers for the proposed offering. Barclays, Deutsche Bank Securities, Jefferies, RBC Capital Market and Stifel are acting as additional book-running managers for the proposed offering, and LOYAL3 Securities, Inc. is acting as co-manager.
In July, it came to light that Square Inc. filed for its initial public offering (IPO) under the Jumpstart Our Business Startups Act. This act allows companies generating less than $1 billion in annual revenue to file IPOs confidentially under the US Securities and Exchange Commission.
The payment company is said to have earned of $560.6M in revenue in the first half of 2015, which is 51% more than the net revenue earned in the first half of 2014. The company was valued at $6 billion at its last funding round of $150M.
About Square, Inc.:
Square creates technology that helps sellers of all sizes unlock the value of every sale. Square's point-of-sale service offers tools for every part of running a business, from accepting credit cards and tracking inventory, to real-time analytics and invoicing. Square also offers sellers financial and marketing services, including small business financing and customer engagement tools. Businesses and individuals use Square Cash, an easy way to send and receive money, as well as Caviar, a food delivery service for popular restaurants. Square was founded in 2009 and is headquartered in San Francisco, with offices in the United States, Canada, Japan and Australia.