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Square shares close 45% up on stock market debut | |
(about 4 hours later) | |
Shares in the global payments company Square ended their first day of trading on Wall Street up 45%. | |
Square priced its shares at $9 (£5.88), lower than the expected range of $11 to $13. The stock closed at $13.07. | |
The low price had caused some investors to speculate about the long term financial health of the company. | The low price had caused some investors to speculate about the long term financial health of the company. |
Square - which helps companies accept and process credit card payments - was created by the co-founder and chief executive of Twitter, Jack Dorsey. | Square - which helps companies accept and process credit card payments - was created by the co-founder and chief executive of Twitter, Jack Dorsey. |
Square is a cube shape plug that attaches to smart phones and tablets to allow them to accept credit card swipes. | Square is a cube shape plug that attaches to smart phones and tablets to allow them to accept credit card swipes. |
Listing its shares publically allowed Square to raise $243m. | Listing its shares publically allowed Square to raise $243m. |
"Square's financials leave much to be desired. But there's still a lot to like here, and... the success of their debut will say a lot about the current IPO environment," said Brian Hamilton, chairman of data firm Sageworks. | "Square's financials leave much to be desired. But there's still a lot to like here, and... the success of their debut will say a lot about the current IPO environment," said Brian Hamilton, chairman of data firm Sageworks. |
Opening bell | Opening bell |
Marcia Dorsey - Mr Dorsey's mother - rang the opening bell of the New York Stock Exchange. | Marcia Dorsey - Mr Dorsey's mother - rang the opening bell of the New York Stock Exchange. |
On Monday, Square addressed for the first time how it planed to handle having a chief executive who is the head of two public companies. | On Monday, Square addressed for the first time how it planed to handle having a chief executive who is the head of two public companies. |
In a statement, the company said Mr Dorsey would give his "full business efforts and time to the company, other than with respect to [his] work with Twitter Inc". | In a statement, the company said Mr Dorsey would give his "full business efforts and time to the company, other than with respect to [his] work with Twitter Inc". |
It was a strong day all around for tech stocks. Match.com also began selling its shares publically. | It was a strong day all around for tech stocks. Match.com also began selling its shares publically. |
The company - owner of dating websites Match, OkCupid and Tinder - saw its shares end 23% higher after being priced at $12. | |
Some investors had begun to question whether tech starts were being overvalued. | Some investors had begun to question whether tech starts were being overvalued. |
According to Thomson Reuters data, more than 50 companies have withdrawn plans to sell shares publically and others have had to lower valuations before listing them on Wall Street. | According to Thomson Reuters data, more than 50 companies have withdrawn plans to sell shares publically and others have had to lower valuations before listing them on Wall Street. |