First Data pares losses in biggest IPO of the year

Richard Drew | AP A banner for First Data Corp. adorns the facade of the New York Stock Exchange, to mark the company's IPO, Thursday, Oct. 15, 2015.

Richard Drew | AP
A banner for First Data Corp. adorns the facade of the New York Stock Exchange, to mark the company’s IPO, Thursday, Oct. 15, 2015.

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Shares of First Data traded in a back-and-forth range Thursday at its initial public offering.

The stock fell more than 1.5 percent after opening higher, but pared those losses to trade about 0.5 higher. It opened at $16.39, up more than 2 percent, after pricing in at $16.

“Their biggest customers, Citi, Bank of America … are pretty sticky, but some of their smaller customers, the smaller merchants, tend to switch based on price. A lot of the smaller merchants are going to be switching to simpler payment solutions,” Gil Luria, financial technology analyst at Wedbush Securities, told CNBC’s “Squawk on the Street.”

“It will be challenging for First Data to maintain its leadership position,” he said.

First Data hoped to raise as much as $3.7 billion in what is expected to be the biggest initial public offering of the year.

“It’s a great day for us to open. We feel fabulous about [the IPO],” CEO Frank Bisignano said in another “Squawk on the Street” interview shortly after the stock began trading.

Bisignano also said he feels confident the company can compete with the likes of Square, which recently filed for its own IPO, and even Visa.

“If you look at what we’ve done over the past two years, we’ve really transformed the company,” he said. “we were a no-growth company and we’ve changed that. We changed how we approached our clients … and changed how we do business with small and medium-sized businesses.”

Reuters contributed to this report.

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