Austin-based NetSpend Holdings Inc. has postponed its $200 million-plus stock that is initial due to regulatory dilemmas relating to the main provider associated with prepaid debit cards NetSpend markets.
NetSpend was indeed anticipated to expense the providing Thursday and begin attempting to sell stocks to the general public this early morning.
Analysts had stated the offering will be well-received as a result of NetSpends position within the fast-growing marketplace for prepaid debit cards, by which it really is a leading provider.
However the providing happens to be postponed until in a few days, according to IPOhome.com, which tracks the marketplace for initial offerings, therefore the Wall Street Journal.
NetSpend would not get back requires remark.
In a securities filing Thursday, NetSpend stated that MetaBank, a vital supplier, was in fact bought by federal regulators Wednesday to prevent an online payday loan system and look for advance approval for just about any brand new or amended third-party agreements, including for prepaid cards. Any office of Thrift Supervision stated MetaBank had utilized misleading methods when you look at the cash advance system.
MetaBank, situated in Storm Lake, Iowa, provides 71 % of this prepaid cards that NetSpend distributes nationwide through grocery, check-cashing shops along with other outlets. NetSpend has about 2.1 million cards that are active.
NetSpend said MetaBanks problems wont affect its operations or funds, nonetheless it said that future actions that are regulatory MetaBank could force it discover another card provider.