NetSpend stock offering delayed
Austin-based NetSpend Holdings Inc. has postponed its $200 million-plus initial stock providing due to regulatory issues concerning the main provider associated with prepaid debit cards NetSpend areas.
NetSpend was indeed likely to rate the providing Thursday and begin myinstallmentloans.net/payday-loans-ia/ attempting to sell stocks to the general public this early morning.
Analysts had stated the providing will be well-received as a result of NetSpends position when you look at the fast-growing marketplace for prepaid debit cards, by which it really is a leading provider.
Nevertheless the offering happens to be postponed until in a few days, based on IPOhome.com, which tracks the marketplace for initial offerings, while the Wall Street Journal.
NetSpend failed to get back demands remark.
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. Work of Thrift Supervision said MetaBank had used deceptive techniques when you look at the pay day loan system.
MetaBank, located in Storm Lake, Iowa, provides 71 % associated with prepaid cards that 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 finances, nonetheless it stated that future regulatory actions against MetaBank could force it to locate another card provider.
The increasing loss of, or switch to, our relationships with MetaBank or our other issuing banking institutions could adversely impact our company, outcomes of operations and position that is financial the filing stated. Continue reading