Square Inc's price range to be set this week: CNBC
(Reuters) - The price range for mobile payments company Square Inc's initial public offering will be set this week and its shares will start trading in the week before Thanksgiving, CNBC said in a tweet on Monday, citing sources.
The company, headed by Twitter Inc Chief Executive Jack Dorsey, filed for an IPO on Oct. 14.
Square's roadshow, which will likely take Dorsey across the globe to drum up interest for an IPO, will begin next week, CNBC said.
Neither Twitter nor Square has been clear about how Dorsey will split his time between the two companies – a cause of concern for some investors, who say he should be specific about how much time he will dedicate to the payments company.
San Francisco-based Square, which was founded in 2009, was valued at $6 billion in its last funding round a year ago.
Square set a nominal fundraising target of $275 million for the IPO. The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees, and the final IPO size is often different.
Square, which declined to comment on the CNBC story, would be among the highest-valued tech companies to go public this year, according IPO manager Renaissance Capital.
But the offering comes at a time when many investors are shying away from IPOs after stocks plunged in August amid worries about China's economy and uncertainly about the timing of an increase in U.S. interest rates.
Rapid Ratings, which rates the financial health of private and public companies, gives Square a score of 41 on a scale of 100, with 100 reserved for the most fiscally sound.
Square falls into the "medium risk" category owing to its declining operating profit and weak earnings performance. The company's total debt exceeds $350 million, Rapid Ratings said.
Square started as a payments company offering small businesses a way to accept credit card payments through a "dongle" for mobile devices.
The Thanksgiving holiday is on Nov. 26.
Square plans to list on the New York Stock Exchange under the symbol "SQ". Goldman Sachs & Co, Morgan Stanley, Barclays and Jefferies are among the underwriters for the offering.
(Reporting by Anya George Tharakan and Kshitiz Goliya in Bengaluru and Heather Somerville in San Francisco; Editing by Anil D'Silva and Ted Kerr)
