Austin-based NetSpend Holdings Inc. has postponed its $200 million-plus initial stock providing as a result of regulatory dilemmas concerning the primary provider for the prepaid debit cards NetSpend areas.
NetSpend have been anticipated to expense the providing Thursday and begin selling shares to people this early early morning.
Analysts had stated the providing could be well-received due to NetSpends position into the fast-growing marketplace for prepaid debit cards, for 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 the marketplace for initial offerings, together with Wall Street Journal.
NetSpend failed to return requires remark.
In a securities filing Thursday, NetSpend stated that MetaBank, a vital supplier, was in fact purchased by federal regulators Wednesday to prevent an online payday loan program and look for advance approval for almost any brand new or amended third-party agreements, including for prepaid cards. The Office of Thrift Supervision said MetaBank had utilized misleading techniques into the pay day loan system.
MetaBank, situated in Storm Lake, Iowa, provides 71 per cent for the cards that are prepaid NetSpend distributes nationwide through grocery, check-cashing stores as well as other outlets. Read more about Advantages of taking right out pay day loans in Baltimore …