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The Markets
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Tech

Square Inc. jumps more than 40% on trading debut

The mobile payments company raised about a third less than planned in its initial public offering.

Square (NYSE:SQ) jumped more than 40% after the mobile payments company raised about a third less than planned in its initial public offering.

Shares rose 38% to $12.45 at 10:24 a.m. in New York, after reaching $13.05, up 45%, earlier in the day.

Square and an existing shareholder raised $243mln, selling 27mln shares for $9 each, according to a statement released on Thursday, after offering them for $11 to $13 apiece.

The IPO price puts the San Francisco, California-based company’s market valuation at about $2.9 billion, excluding options.

The company is one of the most prominent "unicorns," or private companies valued at $1 billion or more, to plan a public debut this year.

Match Group (NASDAQ:MTCH), the online-dating platform whose services include Tinder and OKCupid, also raised less than it wanted in an IPO on Wednesday.

Match and Square are coming to the markets at a volatile time for offerings.

Square plans to use proceeds from the IPO for general corporate purposes and possibly for acquisitions.

Square's net loss expanded to $131.5mln in the nine months through September, from $117mln in the year-earlier period. Revenue jumped 49% to $892.8mln.

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