Square’s IPO debut

A few shekels have certainly been poured into the ever-growing clan of unicorns. Square, a unicorn that raised nearly $600 million in private money, made its market debut on the New York Stock Exchange last week. Square initially priced its 27 million shares at only $9 each, below its intended range of $11 to $13, and significantly below its $15.56 price in its last round of financing. Fortunately for Square, the stock opened at $11.20 and closed at $13.07, raising a total $243 million but valuing the company at around $2.9 billion, a far cry from its private valuation of $6 billion. According to analysts, Wall Street’s reaction to Square’s IPO was predictable, given the company’s dismal financial performance on the back of its failed partnership with Starbucks which will end in 2016. Square generated roughly 14% of its revenue from Starbucks. It will be very interesting to see how Square decide to deploy their $243 million in new capital.
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