Square, the mobile payments company that has long been rumored by Wall Street and the business community to be bringing shares to market via initial public offering, may in fact debut on a major stock exchange this year.
The move comes after a round of “will they?” or “won’t they?” speculation that stretched back to last year when Square denied in the second half of the year that it had delayed an anticipated 2014 timeframe for filing to go public.
Forbes reported Friday (June 12) that sources see the company going public in 2015, though it’s not clear at the moment whether Square has filed the requisite documents with the Securities and Exchange Commission. If the company has not done so yet, it will likely do so in the near future, the unnamed sources told Forbes.
“The plan is to do it this year,” said one of the sources. That source said Square would likely go the route of filing a “confidential” registration statement. The person noted that “there has been some internal debate about the ideal timing.”
What are commonly known as “emerging growing companies” are able to go public under the JOBS Act. Requirements stipulate that the company must have less than $1 billion in annual revenue. Additionally, the JOBS Act allows companies to explore going public with a veil of secrecy and also allows companies to disclose relatively less financial data than they would if they went through the traditional IPO steps.
News of the possibly secret filing came amid management shuffling, when Square’s cofounder and CEO Jack Dorsey became interim CEO of Twitter (he was previously the company’s chairman). That move followed speculation that Dorsey would leave his position at Square for the full-time role at Twitter.
Forbes noted that such a move would seem less likely in the advent of a Square IPO, and Dorsey himself said in a statement that he remained “as committed as ever to [Square’s] continued success.”
To check out what else is HOT in the world of payments, click here.