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NetSpend stock offering delayed
Austin-based NetSpend Holdings Inc. has postponed its $200 million-plus stock that is initial due to regulatory problems concerning the primary provider concerning the prepaid debit cards NetSpend areas.
NetSpend ended up being prone to cost the offering Thursday and commence stocks which can be attempting to sell the typical public this early early morning.
Analysts had stated the delivering might be well-received because of NetSpends position inside the fast-growing market for prepaid debit cards, in which it truly is a provider that is leading.
Even so the offering is actually postponed until a weeks that are few according to IPOhome.com, which tracks the market for initial offerings, plus the Wall Street Journal.
NetSpend wouldn’t normally get straight straight back requires remark.
In a securities filing Thursday, NetSpend reported that MetaBank, an intrinsic supplier, was at reality purchased by federal regulators Wednesday to avoid a fast cash advance system and look for advance approval for every brand-new or amended third-party agreements, including for prepaid cards. Any office of https://cash-advanceloan.net/payday-loans-ca/ Thrift Supervision claimed MetaBank had used misleading techniques within the mortgage system this is certainly payday.
MetaBank, operating out of Storm Lake, Iowa, provides 71 percent from the prepaid cards that NetSpend distributes nationwide through grocery, check-cashing stores along with other outlets. NetSpend has about 2.1 million cards which are active.
NetSpend said MetaBanks problems wont affect its operations or funds, nonetheless it reported that future actions that are regulatory MetaBank could force it to discover another card provider.
The loss of, or change to, our relationships with MetaBank or our other banking that is issuing could adversely influence our business, outcomes of operations and place that is monetary the filing stated.