Square has finally priced its IPO and it hasn't gone terribly well. The $9 per share price came in below the proposed $11-$13 offering range, giving the company an initial market cap of around $2.9b (far less than the $6b in it last private funding round). Square’s IPO highlights the conundrum about whether it should be valued as a traditional payments company or a true technology company.
“It seems more like another payment processor that uses a little technology than a technology company,” said Erik Gordon, a professor at the University of Michigan’s Ross School of Business. “There is no way to put a smiley face on a price that is 40 percent below its previous valuation and nearly 20 percent below the low end of its projected offering range.”