Snap could also sell an additional 30 million shares to its underwriters at a discount on the $17 offering price. That left the company with a market cap north of $28 billion. Wall street was decked out in the now famous Snapchat ghost logo and vending machines selling spectacles. CEO Evan Spiegel and Co-founder Bobby Murphy will have complete control over voting shares of the company.
Snap Inc.'s debut on the NYSE this morning looks like a big hit, and has been described as "the biggest tech listing in years".
The high market value gives Snap twice the size of rival Twitter Inc, and the biggest USA tech IPO since Facebook's five years ago.
Snap, with a reported market value of almost $24 billion, was set to begin trading on the New York Stock Exchange on Thursday, Los Angeles Times reported late on Wednesday.
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SNAP, +48.00% the parent company of messaging app Snapchat, surged more than 40% on Thursday, but the Global X Social Media ETF SOCL, -1.30% fell 1.5%. Despite the popularity, analysts warn that the company is young and has yet to generate profits. The IPO book was oversubscribed by more than ten times, which indicates that today will be a hit for Snap.
In its IPO roadshow in New York, San Francisco, London and elsewhere, Snap Chief Executive Evan Spiegel brushed aside concerns of slowing user growth and stressed Snap's potential to change "the way people live and communicate", according to sources who attended.
The feature, which was previously unique to Snapchat, plays photos and videos shared by users in a loop for 24 hours before they disappear.
Snapchat had 161 million daily active users (DAUs) in the last month of the quarter that ended on December 31, 2016. "Investors also will be exposed to what appears to be a sub-optimal corporate structure operated by a senior management team lacking experience transforming a successful new product into a successful company". Even Snap itself has tried to distance itself from its app-based roots by declaring that it's now a camera company from the future, whatever that means. Twitter is now valued at $11 billion, while Facebook is $395 billion.
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