NetSpend stock offering delayed
Austin-based NetSpend Holdings Inc. has postponed its 200 million-plus initial stock providing due to regulatory issues concerning the main provider of this prepaid debit cards NetSpend areas. NetSpend was in fact anticipated to expense the offering Thursday and begin attempting to sell stocks to the general public this early early morning. Analysts had said the providing could be well-received as a result of NetSpends position when you look at the fast-growing marketplace for prepaid debit cards, by which it really is a leading provider. Nevertheless the providing is postponed until in a few days, based on IPOhome.com, which tracks the marketplace for initial offerings, therefore the Wall Street Journal.
NetSpend failed to get back demands remark.
In a securities filing Thursday, NetSpend stated that MetaBank, a vital supplier, have been purchased 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 techniques within the loan program that is payday.
MetaBank, situated in Storm Lake, Iowa, provides 71 % associated with the cards that are prepaid 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, however it stated that future regulatory actions against MetaBank could force it to get another card provider.
The increasing loss of, or modification to, our relationships with MetaBank or our other issuing banking institutions could adversely influence our company, outcomes of operations and position that is financial the filing stated.