Square discounts stock to $9 a share to complete IPO
SAN FRANCISCO (AP) — Mobile payments processor Square had to sell its stock at a deep discount to complete its initial public offering. The concession signals investors are becoming wary of once-hot startups that haven't proven they can make money.
According to published reports, the IPO priced at $9 per share late Wednesday, below a target of $11 to $13 that Square set last week. The price is 42 percent below the $15.46-per-share price that Square fetched a year ago when it raised $180 million while it was still a privately held company.
The steep markdown could foreshadow trouble ahead for venture capitalists and other investors who have been pouring billions of dollars into technology startups in recent years.