Green Dot IPO Premium May Provide 801% Return for Owners Wal-Mart, Sequoia

Green Dot IPO Premium May Provide 801% Return for Owners Wal-Mart, Sequoia - Bloomberg
Green Dot Corp.’s executives are seeking an initial public offering that hands Wal-Mart Stores Inc. a ninefold paper gain in the debit-card seller, asking for a higher price than investors pay for any of its rivals.
Green Dot’s management team and stakeholders are selling 4.17 million shares for $32 to $35 each today, the Monrovia, California-based company’s filing shows.

The sale would generate instant profits of about 801 percent for owners such as Wal-Mart, the world’s largest retailer, and venture capital firm Sequoia Capital, which paid an average $3.72 per share. IPO buyers will be spending 27 times Green Dot’s estimated 2010 profit, more than listed competitors from Visa Inc. to MoneyGram International Inc. and Higher One Holdings Inc. command.