Austin-based NetSpend Holdings Inc. has postponed its $200 million-plus initial stock providing due to regulatory issues relating to the primary provider associated with the prepaid debit cards NetSpend areas.
NetSpend was likely to amount the offering Thursday and begin offering stocks to the general public this early early morning.
Analysts had stated the providing could be well-received as a result of NetSpends position into the fast-growing marketplace for prepaid debit cards, by which it really is a leading provider.
Nevertheless the providing happens to be postponed until in a few days, in accordance with IPOhome.com, which tracks the marketplace for initial offerings, together with Wall Street Journal.
NetSpend would not get back requires comment.
A key supplier, had been ordered by federal regulators Wednesday to halt a payday loan program and seek advance approval for any new or amended third-party agreements, including for prepaid cards in a securities filing Thursday, NetSpend said that MetaBank. Any office of Thrift Supervision said MetaBank had utilized misleading techniques when you look at the pay day loan system.
MetaBank, situated in Storm Lake, Iowa, provides 71 % regarding the cards that are prepaid NetSpend distributes nationwide through grocery, check-cashing shops along with other outlets. NetSpend has about 2.1 million cards that are active.
NetSpend said MetaBanks problems wont affect its operations or funds, however it stated that future regulatory actions against MetaBank could force it to get another card provider.
The increased loss of, or switch to, our relationships with MetaBank or our other issuing banking institutions could adversely influence our company, link between operations and position that is financial the filing stated.
NetSpend and its own investors have actually filed to market 18.5 million stocks into the stock providing, targeting an amount between ten dollars and $12 a share. Continue reading