NetSpend Holdings Raises $204 Million in IPO After Delay; Shares Advance

NetSpend Holdings Inc., the provider of reloadable prepaid debit cards that delayed its initial public offering last week, raised $204 million after pricing its IPO at the middle of the forecast range. The shares climbed.

The company sold 18.5 million shares for $11 each yesterday after offering them for $10 to $12 each, according to a statement from Austin, Texas-based NetSpend and a Securities and Exchange Commission filing. Separately, ShangPharma Corp., a Shanghai-based pharmaceutical company, raised $87 million selling American depositary receipts, Bloomberg data show.

NetSpend’s IPO was pushed back after Meta Financial Group Inc.’s MetaBank, which issues 71 percent of NetSpend’s debit cards, said the U.S. Office of Thrift Supervision found that it had engaged in unfair or deceptive acts or practices with its iAdvance line of credit program. Green Dot Corp., the largest U.S. provider of reloadable prepaid debit cards, has rallied 42 percent since its $189 million initial offering in July.

“It does show the quality of the opportunity there,” said Timothy Cunningham, a manager at Santa Fe, New Mexico-based Thornburg Investment Management, which had $56 billion in assets as of June 30. “I would have expected, given the concerns on MetaBank, for it to come in below or possibly get pulled.”

Nasdaq Trading

NetSpend advanced 17 percent to $12.83 at 10:36 a.m. New York time in Nasdaq Stock Market trading today.

Goldman Sachs Group Inc. in New York, Bank of America Corp. of Charlotte, North Carolina, and Chicago-based William Blair & Co. led the offering. Oak Investment Partners planned to cut its stake in NetSpend to 39 percent from 47 through the offering, the SEC filing showed.

Meta Financial has tumbled 56 percent since the Storm Lake, Iowa-based lender said in an SEC filing that the Office of Thrift Supervision had required MetaBank to discontinue its iAdvance program. NetSpend owns about 5 percent of the outstanding equity interests in Meta Financial, filings show.

ShangPharma sold 5.8 million ADRs at $15 each yesterday, within the forecast price range of $14.50 to $16.50, according to data compiled by Bloomberg and SEC filings. The shares fell 6.8 percent to $13.98 in New York Stock Exchange trading.

TAL Education Group of Beijing, which offers after-school tutoring services, will offer 12 million ADRs for $8 to $10 each today after companies from China posted three of the four biggest gains among U.S. IPOs in 2010.

Economic Forecasts

China’s economy will grow 9.6 percent in 2011, according to estimates from the Washington-based International Monetary Fund. That compares with 2.2 percent for developed nations and 2.3 percent forecast for the U.S.

Bravo Brio Restaurant Group Inc., the Columbus, Ohio-based Italian restaurant chain operator, will sell 8.3 million shares at $14 to $16 each tomorrow.

Vera Bradley Inc., the Fort Wayne, Indiana-based women’s accessory retailer, will offer 11 million shares at $14 to $16 each on Oct. 21. Aegerion Pharmaceuticals Inc., the Bridgewater, New Jersey-based biopharmaceutical company that develops drugs treating lipid disorders, will sell 4.7 million at $14 to $16 the same day, SEC filings and data compiled by Bloomberg show.

To contact the reporter on this story: Cecile Vannucci in New York at cvannucci1@bloomberg.net.

To contact the editor responsible for this story: Daniel Hauck at dhauck1@bloomberg.net.

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.