NetSpend stock offering delayed
Austin-based NetSpend Holdings Inc. has postponed its $200 million-plus initial stock providing due to regulatory dilemmas relating to the main provider associated with prepaid debit cards NetSpend areas.
NetSpend was indeed anticipated to rate the providing Thursday and begin attempting to sell stocks to the general public this early early morning.
Analysts had stated the offering could be well-received due to NetSpends position into the fast-growing marketplace for prepaid debit cards, for which it’s a provider that is leading.
Nevertheless the providing happens to be postponed until in a few days, in accordance with IPOhome.com, which tracks industry for initial offerings, in addition to Wall Street Journal.
NetSpend would not return requires comment.
In a securities filing Thursday, NetSpend stated that MetaBank, a vital supplier, was indeed purchased by federal regulators Wednesday to prevent a quick payday loan system and look for advance approval for just about any brand new or amended third-party agreements, including for prepaid cards. Work of Thrift Supervision stated MetaBank had used misleading techniques within the cash advance system.
MetaBank, situated in Storm Lake, Iowa, provides 71 per cent of this prepaid cards that 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 finances, nonetheless it stated that future regulatory actions against MetaBank could force it to get another card provider. (more…)