Shares in the global payments company Square ended their first day of trading on Wall Street up 45%.
Square began trading at $11.20 a share on the New York Stock Exchange, up slightly from its $9 pricing last night. The stock is currently up 42 percent from market open and rising.
Square’s public offering has been the subject of much discussion. Prior to its roadshow, Square was valued at $6 billion as a private company. Ahead of its initial public offering, that valuation dropped to $4.1 billion. There is a difference between the way public and private company valuations are calculated, which may account for some, if not all, of the difference. Regardless, the lowered valuation may have negatively impacted Square’s initial stock price.
On top of that, investors continue to be concerned about whether chief executive Jack Dorsey will be able to give Square enough attention. Over the summer, Dorsey took the reigns at Twitter as interim CEO. Later he was awarded the position full-time. The move was particularly concerning to investors because both companies are undergoing major changes; Twitter is in the process of restructuring, while Square is still learning the ropes as a publicly traded company. Undoubtedly, questions about Dorsey’s split focus affected Square’s debut price.
Sportact Editors and Wire Services