Square Inc. has been in talks with banks about a possible initial public offering, reports the Wall Street Journal.
The company is headed by Twitter Inc. co-founder Jack Dorsey. A source with knowledge of the plan told the WSJ that the company has had discussions with banks about an IPO in 2014. These talks have been held with both Morgan Stanley and Goldman Sachs Group Inc., the source said. But it’s been stressed that no bank has been hired and the deal’s timing could be altered. When contacted, representatives from Goldman Sachs, Morgan Stanley and Square did not respond, Reuters reports.
Square is projected to reach close to $1 billion in sales in 2014, said sources familiar with internal projections that they shared with the Wall Street Journal. This growth is quickly rivaling that of Twitter, which launches its IPO on Thursday. Twitter Inc. has priced 70 billion shares at $26, which is higher than the previous targeted range between $23 and $25. At $26, the San Francisco-based company is set to raise at least $1.8 billion with the deal.
Square, which was founded by Dorsey in 2009, manufactures a credit card reader that users can connect to smartphones.