Square company is going to go IPO

Payment device maker Square is now preparing for an IPO. At the same time, the conditions for entering the company on the stock exchange are now optimal, plus last year investors estimated Square at $ 6 billion, Vedomosti reports. Now this company, whose headquarters is located in San Francisco, has already sent a request for initial public offering to US regulators. At the same time, Square's leadership took advantage of the US law on support for start-ups - according to this law, a company with annual revenues of up to $ 1 billion may not disclose details of its work to an IPO.

According to experts, Square IPO may well become a breakdown for the market of hi-tech companies, whose members do not seek to become public. Private funding is used instead. According to the company Dealogic, since the beginning of this year, only 19 companies in the United States held an IPO. Last year, for the same period of time, 41 companies became public.

Square has been in the market for payment devices for 6 years. Now the company needs to solve a number of organizational issues, including the fate of the workplace of Jack Dorsey, CEO of the company. The fact is that this year Dorsey became the acting CEO of Twitter. If he continues to work in this company, he will have to leave Square, although Jack Dorsey owns a 26.2% stake in this company.

Square offers its customers payment terminals, charging 2.75% of each transaction. The company’s decisions are used by many small-scale entrepreneurs, including street food vendors, coffee shop owners and taxi drivers. In the past few years, Square has had competitors: PayPal, Amazon, Intuit. Now the company is looking for additional sources of income.