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 of this prepaid debit cards NetSpend areas.
NetSpend was in fact anticipated to expense the providing Thursday and begin offering stocks to people this morning.
Analysts had said the providing will be well-received as a result of NetSpends position into the fast-growing marketplace for prepaid debit cards, by which it really is a provider that is leading.
Nevertheless the providing happens to be postponed until a few weeks, in accordance with IPOhome.com, which tracks industry for initial offerings, additionally the Wall Street Journal.
NetSpend failed to return requires comment.
In a securities filing Thursday, NetSpend said that MetaBank, an integral supplier, was indeed purchased by federal regulators Wednesday to prevent a quick 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 pay day loan system.
MetaBank, located in Storm Lake, Iowa, provides 71 per cent of this 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, nonetheless it stated that future actions that are regulatory 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 influence our company, link between operations and budget, the filing stated.