Snap to Price IPO at $17/Share, Giving Company Nearly $24 Billion Valuation
Snap Inc., the parent company of the popular app Snapchat, will reportedly be pricing its IPO (initial public offering) at $17 per share, valuing the company at approximately $24 billion.
With this IPO pricing, the company is putting around $4 billion in cash to its investors. This was an increase from the original $3 billion estimate, which would have priced the stock at around $15 per share and giving the company a valuation of $21 billion.
Just like Twitter, Snapchat was unable to generate a profit going forward and expects to post a loss for the foreseeable future. Snapchat recently passed Twitter in terms of the number of active users, which means the social network is continuing to grow and gain traction among the younger demographic.
Snap and its investors seem very confident in the company, and given today’s pricing, there still seems to be a large appetite for investment. Anyone who buys shares of Snap is putting all their faith behind the two young founders, as the shares do not come with any voting rights for how the company is run.
[via Business Insider]