Snap Inc Shares Open Trading at $24

Newly public stock is flirting with 50 percent premium above initial IPO price

Last Updated: March 2, 2017 @ 9:14 AM

Snap Inc. began its trading at $24 per share this morning on the New York Stock Exchange.

Shares for the Snapchat parent company are currently trading almost 50 percent above its initial public offering (IPO) price of $17.

Below is a “snap”-shot of how SNAP was trending right around noon ET — or about an hour after shares first hit the open market.

SNAP-2

The company’s initial public offering consisted of 200 million shares. Snap Inc. values the overall company at $24 billion. Buyer beware: the home to the popular app has warned that they “may never achieve” profitability.

Of course, it’s all too early to call. Bookmark TheWrap to find out exactly where SNAP is trading throughout the course of its first day as a publicly traded company — and beyond.

Snap had 158 million daily active users by the end of last year, but the company’s user growth rate is slowing — and its losses are widening. In 2016, Snap reported a $514.6 million net loss on revenue of $404.5 million, after losing $372.9 million on $58.7 million in revenue the previous year.

Here’s more information straight from Snap Inc.’s official IPO media release:
Snap Inc. today announced the pricing of its initial public offering of 200,000,000 shares of Class A common stock at a price to the public of $17 per share, for a total offering size of $3,400,000,000. Snap is issuing and selling 145,000,000 shares of Class A common stock and the selling stockholders are selling an additional 55,000,000 shares of Class A common stock. The shares are expected to begin trading on the New York Stock Exchange on March 2, 2017 under the symbol “SNAP.”

In addition, Snap and some of the selling stockholders have granted the underwriters a 30-day option to purchase up to an additional 30,000,000 shares of Class A common stock at the initial public offering price less the underwriting discount.

Morgan Stanley, Goldman, Sachs & Co., J.P. Morgan, Deutsche Bank Securities, Barclays, Credit Suisse and Allen & Company LLC are acting as book-running managers for the offering.