News: Falls short of expected $3.7bn.
Payment processing company First Data has issued 160 million shares during its IPO at $16 per share, raising $2.56bn.
Private equity firm KKR, who owns First Data, had expected the IPO to raise $3.7bn.
The share price was around $2 less than the low end of the proposed range of $18 to $20, reports Bloomberg.
Though 17% less than the expected range, First Data’s IPO is still the largest IPO this year.
Rising revenues and expanding debt have been affecting the company’s prospects. First Data had interest expenses of $813m in the first quarter of this year.
The firm has an unadjusted total load of $21.16bn, a portion of which will be paid with the IPO proceeds.
The company will, however, not be able to cut down its debt load as much as anticipated due to the lower share pricing.
Following the IPO, First Data is expected to have a market value of just $14bn.
The firm has been scaling up in spite of the debts, and had $5.56bn in revenue during the first six months of this year.