The San Francisco-based company earlier this month set a price range of USD 11 to USD 13, well below the USD 15.46 per-share price investors paid in Square's most recent private financing round last year.
The steeper discount to USD nine, a 42 percent drop from a year ago suggests widespread uncertainty about the profitability of the payments industry and the future of Square itself, which has seen slowing revenue growth.
The weaker price set on Wednesday puts Square's market capitalization at USD nine billion, a far cry from the USD six billion valuation it had earned from private investors.
"The way that Square was valued as a private company is they were just going to disrupt everything and change payments," said Andrew Chanin, chief executive officer of PureFunds, an exchange-traded fund that includes mobile payments companies.

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