Today’s initial public offering from Official Payments, which provides electronic payment services to government entities, should get off to a strong start. The company priced five million shares at $15 a share, the top end of its range. Official Payment’s technology allows individuals to use credit cards to make payments to local and federal government organizations. The company generates revenue by charging fees for each transaction.
It is not surprising that Official Payment gets 71 percent of its revenue from fees for payments to the Internal Revenue Service. It looks like a high-growth company because paying taxes is something every American has to do, and Official Payment’s services get rid of a lot of the hassle related to this yearly chore.
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