Thursday, 2 March 2017
LOS ANGELES: Snap Inc, the maker of Snapchat, will begin selling its shares for $17 a piece when it starts trading on the New York Stock Exchange Thursday morning. This puts the company’s valuation at $24 billion, and allowed it to raise around $3.4 billion in funding.
The company told financial regulators earlier this year in a filing that it intends to sell 200 million class A shares, which will come without voting rights.
Snap was widely expected to price its shares between $14 and $16, which would have valued the company anywhere between $19.5 billion and $22.3 billion. However, there had been signs in recent days for a lot of demand, leading some to suggest that the company may price its shares at up to $18 per share.
The counterpoint for a high share price was that it could lead to Snap trading flat on opening day, something companies try to avoid to make their market entry look like a success story. The fact that Snap nonetheless went for an above-range price suggests that it is confident in demand among investors.
Source by: Internet