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Finance

Square and Tinder Are Going Public This Week

By
Dan Primack
Dan Primack
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By
Dan Primack
Dan Primack
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November 16, 2015, 3:47 PM ET
Twitter Co-Founder Jack Dorsey
Jack Dorsey, co-founder of Twitter Inc. and chief executive officer of Square Inc., speaks during a television interview in New York, U.S., on Monday, Oct. 25, 2010. Square's mobile-payment technology allows smartphone users to make credit card payments and the availability of funding for new ventures. Photographer: Jin Lee/Bloomberg via Getty ImagesPhotograph by Jin Lee — Bloomberg via Getty Images
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This year has been extremely lackluster when it comes to technology IPOs, but this week we’re expecting four such deals, headlined by payments company Square and online dating company Match Group.

Match Group, whose brands include Match.com and Tinder, is expected to be the largest offering, with plans to sell 33.33 million shares at between $12 and $14 per share. That would generate around $433 million at the midpoint, with proceeds being used to repay related-party indebtedness to parent company IAC/Interactive Corp. (IACI). It would have an initial market cap of around $3.12 billion.

The company is profitable with $85 million in net income on $753 million in revenue for the first nine months of 2015.

Square, founded and led by Twitter (TWTR) CEO Jack Dorsey, is seeking to raise a bit less money, but is being watched more closely by Silicon Valley and venture capitalists. The unprofitable company plans to sell 27 million shares at between $11 and $13 per share, which at the midpoint would generate $324 million at an initial market cap of approximately $3.88 billion. That valuation is significantly lower than where Square last raised money in the private markets, and perhaps reflects concerns over Dorsey’s split responsibilities. Or maybe market cap is the wrong figure to use vis-a-vis private markets, as Square’s fully-diluted value at $12 per share would be closer to $5.75 billion.

 

Both Match and Square are expected to price their offerings on Wednesday night, and begin trading on Thursday.

Thee week’s other anticipated tech IPOs come from Cognitec, a German provider of embedded computing solutions that is seeking to raise $60 million at a $263 million initial market cap; and Mimecast, a London-based provider of cloud security and risk management services for corporate information and email, which wants to raise $85 million at an initial market cap of around $594 million.

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