Apparently, the Green Dot Corporation sees signs that their IPO (scheduled for this Thursday, July 22, 2010) will have significant demand. They have increased the number of shares they will float in the IPO by approximately 8%. The bump should raise an extra $11 Million for the prepaid debit card company.
In an indication of the demand for shares of the prepaid debit card company, Green Dot Corp. has increased the number of shares it will offer in the company’s upcoming IPO. The shares will be traded on the NYSE under the symbol “GDOT”. When Green Dot priced the offering, on July 9, they intended to offer 3,850,000 shares. Today, Green Dot filed a further amended registration statement, indicating they will offer 4,170,827 shares.
The increased demand may be due, at least in part, to the passage of H.R.4173 – Dodd-Frank Wall Street Reform and Consumer Protection Act last week (the bill is expected to be signed by President Obama this week). The financial reform bill specifically excluded reloadable prepaid debit cards from a number of provisions, including provisions relating to debit cards and interchange. The exclusions may help boost the outlook for shares of prepaid debit card companies such as Green Dot Corp.
The registration document filed on July 9, 2010 shows the following:
And the Green Dot (NYSE:GDOT) registration document from July 19, 2010 shows the shares as follows:
The Green Dot IPO is shaping up as one of the more highly anticipated IPOs of the summer.
Green Dot issues prepaid debit cards, including the Green Dot Prepaid MasterCard, and also operates the Green Dot Reload Network (used to load and reload a wide variety of different prepaid cards).