Snap launched its shares into a hungry market.
It faces intense competition from larger rivals such as Facebook's Instagram as it grapples with decelerating user growth. The IPO has tested investor appetite for a social media app that is popular among people under 30 for applying bunny faces and vomiting rainbows onto selfies, but has yet to convert the cool factor into cash.ĭespite a nearly seven-fold increase in revenue, Los Angeles-based Snap's net loss widened 38 percent last year to $514.6 million. 1,818 crores) on the offering.Īmong the traders on the floor, men and women carried the company's video-camera glasses called Spectacles and stuffed versions of Snap's smiling ghost mascot. Secretive Snap co-founder Evan Spiegel, who usually favours sweats or a button-down shirt, showed up to the floor of the exchange in a suit and tie to ring the opening bell before leaving the building to watch festivities away from the spotlight he famously avoids. That makes it the biggest US technology IPO since Alibaba Group Holding Inc in 2014, despite the fact that Snap has never made a profit. With a full greenshoe option to issue more shares likely to be exercised, the company is poised to increase its deal size to $3.9 billion (roughly Rs. The owner of Snapchat, an app popular with young people for its disappearing messages, raised $3.4 billion in its IPO on Wednesday, more than the $3 billion Facebook offered to pay for the company in 2013. The stock closed at $24.48 on the New York Stock Exchange on Thursday, well above the initial public offering price of $17 per share on Thursday, giving the company a market value of $28.3 billion, on a par with CBS Corp and Target Corp.Īt one point the stock hit a high of $26.05 and a market value of $29.1 billion. Snap Inc's shares ended up 44 percent on their first day of trading as investors flocked to buy into the hottest technology stock offering in three years, overcoming doubts about the loss-making messaging app company's slowing user growth.
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