$20bn flotation of Snap sees 'a nosebleed's worth of demand' for shares

Jon Howard
March 4, 2017

In the opening minutes of trading its price hit $US24.48 a share, a jump of about 40 percent.

The news marks the last major piece of the puzzle before Snapchat officially becomes a publicly traded company on the New York Stock Exchange.

Libertex Business Development Manager Andew Nikolaev added: "Snap Inc. shares have been priced at $17 per share that is above the initial price range".

At that price, Snap will spawn a new group of paper billionaires and millionaires.

Social media company Snapchat went public Thursday, and a private school in Mountain View could be getting a huge payout thanks to an early investment.

Lightspeed was the first to back Snapchat and now owns a stake in the company worth almost $2 billion.

Snap filed its IPO with the Securities and Exchange Commission early February, in which the company said, "We believe that reinventing the camera represents our greatest opportunity to improve the way that people live and communicate".

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Snap is the biggest USA tech IPO since Facebook, which went public with a $104 billion valuation in 2012.

It reported a rise of just over 3% in the final quarter of past year when it had been in double figures earlier in 2017.

Lynton was an early investor in Snap, which is now worth more than $30 billion after investor excitement over the unprofitable company's future prospects. Snapchat had 158 million daily users in the most recent quarter, compared to Facebook's 1.23 billion daily users.

Snap's Snapchat app is best known for disappearing messages and quirky facial filters for jazzing-up selfies. Snap's valuation could be as high as $24 billion, the largest for a US-based tech company since Facebook went public.

Even concerns about Snapchat's slowing user growth aren't stopping investors from clamoring for its stock.

What time is the biggest initial public offering since Facebook (FB) or Alibaba (BABA) set to begin trading? The move was beset by technical glitches and accusations that the company had failed to adapt to mobile phone use, and within four months its share price had halved.

Snap's sales are growing at a fast pace, rising to more than $400 million in 2016 from just $58.7 million in 2015.

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