Investors Are Eager to Snap up Snap Shares After Successful IPO
Snapchat parent company Snap begins trading on the New York Stock Exchange on Thursday under the ticker name SNAP after the popular messaging app raised $3.4 billion in its initial public offering (IPO).
Snap’s offering was priced above the expectations at $17 a share. The IPO was oversubscribed by more than ten-times which means the shares could have been priced at as much as $19.
The stock price places the company's market value at around $24 billion. Snap was initially targeting $19.5 billion to $22.3 billion range.
According to Reuters sources, the company wanted to attract longer-term investors, like mutual funds, rather than hedge funds which could sell the shares quickly for a fast profit.
Snap became one of the highest-profile stock market debuts in years thanks to high demand from investors.