Square Files for Initial Public Offering (IPO)

Co-founder and CEO Jack Dorsey is also a co-founder and CEO of Twitter (NYSE: TWTR).

Square, which offers a mobile payment service with credit card readers for phones and tablets, filed on Wednesday with the SEC to raise up to $275 million in an initial public offering.

The companies partnership, which formed in 2012, began to unravel previous year when Starbucks stopped accepting payments from mobile devices running Square Order.

The San Francisco company says revenue rose 51 percent to $560.6 million during the first six months of 2015 from the same months a year ago.

In a Securities and Exchange Commission filing, Square said losses jumped to $154 million previous year on $850 million in revenue from about $105 million on $552 million in revenue during 2013. It is known that the company will list its common stock on the New York Stock Exchange under the symbol “SQ”.

US listings had raised about $30 billion through the end of Tuesday, compared with $82 billion by that point past year and $42 billion in that periodof 2013, according to Dealogic.

Investors and analysts have expressed reservations about Dorsey’s ability to be CEO of both companies simultaneously.

The filing also gives the best look yet at Square’s financial situation, and its steady growth.

While Square’s public debut is not unexpected, it comes amid a volatile stock market and economic uncertainty.

Square, the financial-services startup that helps small businesses process credit card payments, is planning to go public. If you believe the payments market is growing, as many do, and you believe that Square can claim a piece of it even if it doesn’t become the market leader, then the company may show promise to investors. Also of note is that “In the 12 months ended June 2015, over two million sellers accepted five or more payments using Square”.

Reducing conflicts of interests and minimizing head butting, Dorsey has stepped down from his role as Chairman (though he remains on the board) and former Twitter CEO Costolo has resigned from Twitter’s board.

Above: Jack Dorsey at Twitter’s IPO. While the deal allowed Square to establish its brand, it only generated $123 million in sales previous year. “We’ll measure ourselves by our commitment to take the long view and focus on building a company that creates value over decades and not just a few fiscal quarters out”.