Posted on Nov 19, 2015 in Press
Wall Street doesn’t hate unicorns, after all.
Square, the mobile-payments startup founded by Jack Dorsey, saw its shares soar 45 percent on their first day of trading — despite worries that so-called tech unicorns, private companies valued at more than $1 billion, are overpriced.
On the other hand, Thursday’s promising first day of trading was enabled in no small way by the company’s investment bankers 24 hours earlier taking down the pricing of the stock to a rock-bottom $9 — well below an earlier range of $11 to $13.
With the shares closing at $13.07 on the New York Stock Exchange, Square had a market capitalization of more than $4.2 billion.
That is well below the $6 billion valuation that Square had fetched in private investing rounds during the past year — confirmation that venture capitalists have been a little frothy with their estimates of late.
“A lot of public fund managers in New York are looking to restore some pricing discipline,” says Rett Wallace, chief executive of Triton Research, a firm focused on tech initial public offerings.
Read full article at nypost.com
