Is the Square IPO at a discount to the last round that valued the payments start-up at $6bn? The FT provides some interesting perspective having studied the recently amended S-1.
The $6bn valuation was on a fully diluted basis, adding in all the options and warrants. On the same basis, the IPO values the company at up to $6.2bn. Although the share price is indeed lower — $11-$13 compared with $15.46 in the last private round — the diluted share count is now higher. There is not much of an embarrassing (or generous) discount at all.