(Reuters) – Higher One Holdings Inc ONE.N, which provides banking services to colleges and college students, priced shares in its initial public offering below the expected range, according to a market source.
The company sold 9 million shares for $12 each, raising about $108 million. It had planned to sell 14.25 million shares for $15 to $17 each.
Higher One said it would use proceeds from the offering to repay debt, costs associated with its acquisition of CASHNet and for general corporate purposes.
Higher One’s services include financial aid disbursement and tuition payment. Investors in the company include Lightyear Capital, Club Circle Partners, North Hill Ventures and Hanseatic Americas LDC.
Revenue and net income to common shareholders more than doubled from a year earlier in the quarter ended March 31, hitting $37.57 million and $1.71 million, respectively.
Underwriters were led by Goldman Sachs & Co. The shares are expected to begin trading the New York Stock Exchange on Thursday under the symbol “ONE.” (Reporting by Clare Baldwin in New York; Editing by Richard Chang)