NetSpend stock offering delayed
Austin-based NetSpend Holdings Inc. has postponed its $200 million-plus initial stock providing as a result of regulatory dilemmas relating to the main provider for the prepaid debit cards NetSpend markets.
NetSpend was in fact anticipated to rate the providing Thursday and begin shares that are selling the general public this early early morning.
Analysts had stated the offering could be well-received as a result of NetSpends position within the fast-growing market for prepaid debit cards, by which it really is a leading provider.
However the providing happens to be postponed until a few weeks, in accordance with IPOhome.com, which tracks the marketplace for initial offerings, and also the Wall Street Journal.
NetSpend would not get back demands remark.
In a securities filing Thursday, NetSpend stated that MetaBank, an integral supplier, was in fact bought by federal regulators Wednesday to prevent a payday loan system and look for advance approval for almost any brand new or amended third-party agreements, including for prepaid cards. Any office of Thrift Supervision stated MetaBank had utilized misleading methods within the loan program that is payday.
MetaBank, located in Storm Lake, Iowa, provides 71 % regarding the cards that are prepaid NetSpend distributes nationwide through grocery, check-cashing shops as well as 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 locate another card provider.
The increased loss of, or switch to, our relationships with MetaBank or our other issuing banking institutions could adversely impact our company, link between operations and budget, https://guaranteedinstallmentloans.com/payday-loans-wi/ the filing stated. Continue reading