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NetSpend Advances After Raising $204 Million in IPO

Oct. 19 (Bloomberg) -- NetSpend Holdings Inc., the provider of reloadable prepaid debit cards that delayed its initial public offering last week, advanced 18 percent in its first day of trading after raising $204 million in its IPO.

The company’s shares gained $2 to $13 in Nasdaq Stock Market trading. Austin, Texas-based NetSpend sold 18.5 million shares for $11 each yesterday after offering them for $10 to $12, a company statement and a filing with the Securities and Exchange Commission showed.

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 34 percent since its $189 million initial offering in July.

“Initially it was really attractive, and then there was the concern about the MetaBank relationship,” said Timothy Cunningham, a manager at Santa Fe, New Mexico-based Thornburg Investment Management, which had $56 billion in assets as of June 30. “It shows how attractive the company and the opportunity is that they were able to still get the deal done.”


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 60 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.

Separately, ShangPharma Corp., a Shanghai-based pharmaceutical company, raised $87 million selling 5.8 million American depositary receipts 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 15 percent to $12.75 in New York Stock Exchange trading today, the biggest first-day decline for any U.S. IPO this year, data compiled by Bloomberg show.

China IPOs

TAL Education Group of Beijing, which offers after-school tutoring services, raised $120 million selling 12 million ADRs for $10 each today, the top end of its forecast price range, according to data compiled by Bloomberg. The sale came after companies from China posted three of the four biggest gains among U.S. IPOs in 2010.

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, has moved its offering of 11 million shares at $14 to $16 each to tomorrow from Oct. 21, according to data compiled by Bloomberg.

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 on Oct. 21, SEC filings and data compiled by Bloomberg show.

To contact the reporter on this story: Cecile Vannucci in New York at

To contact the editor responsible for this story: Daniel Hauck at

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