Square (SQ: NYSE) priced its IPO at a valuation of $2.9 billion after being valued in a private financing last year at $6 billion.
The shares were priced at $9 – down from the $11 – $13 price talk.
Square, a mobile payments company was founded in 2009 – giving small businesses the ability to accept credit card payments through mobile devices and now also offers services ranging from loans to invoice software.
For the nine months ended Sept. 20, Square made $892.8 million in revenue, a 49 percent increase from the same period in 2014, but slower revenue growth compared with prior years.
It posted $131.5 million in losses, up from $117 million the prior year.
Market participants cited their recent financial results and strong competition from traditional credit card companies, PayPal, Apple, Google, well funded banks and numerous other private FinTech payment companies.