Snapchat debuts at 30% premium of IPO price

Snap’s IPO filing left out details about historical trends for user metrics, he said – typically not a good sign. This has held true over the years and is expected to hold true for Snap, Inc. as the company will become public this week.

Snap, the parent company of Snapchat, on Wednesday priced its initial public offering at $17 per share, valuing the company at almost $24 billion.

Spiegel and cofounder Bobby Murphy each sold 16 million shares in the IPO that earned them US$272 million apiece. Snap stock rose another 3% throughout the day on Thursday, closing at $24.48 per share and valuing Snap at $28.3 billion.

The IPO hit a major chord with investors, opening at $17 a share, racing past $25 and closing at $24.48 a share, for a 44% rise in value.

SNAP shares surged 40% on its first day of trading and added another 10.7% Friday. Snap Inc. passed its first major test on Wall Street on Wednesday as it priced its initial public offering of 200 million shares at $17 each. The company now has about $2.3 billion in cash to use for acquisitions, new hires, product development or whatever else it chooses to do.

Some of the concern about the company’s long-term stock picture, though, is rooted in questions about how the company plans to avoid the type of pitfalls that have poked holes through Twitter stock for the past four years.

“Snap’s IPO has spurred great interest because few tech companies went public last year amid a shaky market, and none have debuted on the stock market this year”, the report said.

The sale, of 200 million shares in total, demonstrated a frenzy of demand for the stock and it took nearly two hours from the opening bell being rung for the opening price to emerge.

“While I’ve enjoyed Snap’s journey with my Partners as an early investor, I have the unexpected bonus of sharing the experience with my children”, Eggers said in the post.

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

Snap began trading into a market with keen hunger.

Lock them up? Find out why a big block of investors will agree not to sell their Snap stock for at least a year at Business Insider.