CNBC News Releases

Breaking News from CNBC’s Kayla Tausche: Square Likely to Price Below Range – Sources


WHEN: Today, Wednesday, November 18th

WHERE: CNBC's "Power Lunch"

Following is the unofficial transcript of breaking news from CNBC's Kayla Tausche.

All references must be sourced to CNBC.

KAYLA TAUSCHE: Well as the day goes on, it looks increasingly like Square will price its IPO below the range it laid out in filings two weeks ago, this according to sources familiar with the situation. It appears the large shareholders want a steeper discount on the stock for assurances that it performs well and advisors have been recommending a lower price to the company than expected. Of course, when Square first outlined its price range of $11 to $13 a share, the valuation then was thought to be conservative since it was a drop from the company's internal valuation of more than $15 a share, which happened as recently as October. But investors, as we know, have become extremely choosey when it comes to buying new stock, especially for companies that are not yet profitable and in this particular case, whose CEO Jack Dorsey is currently shared with another company in Twitter. Of course, Square could choose to push back on the advice to price below the range. We have seen companies do that in the past, whether it's for optics or to get more proceeds going forward. Of course, the final price will be decided after the bell with the first trade happening tomorrow. But so far guys, it looks like that price may come in below the expected price range.

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