Meet the newest Billionaires on the block
Snap Inc. surged in its debut as a publicly traded company Thursday, after raising a greater than expected $3.4 billion in an initial public offering.
Shares of Snapchat’s parent company opened for trading at $24, up about 41% from the IPO price of $17 apiece. At the opening price, Snap had a valuation of about $33 billion.
The stock closed at $24.48, up 44%.
Snap’s cofounders, Evan Spiegel, 26, and Robert Murphy, 28, rang the opening bell on the exchange earlier Thursday. At the IPO price, Spiegel’s stake in the company is worth at least $4.5 billion. Murphy’s stake in Snap is valued at closer to $3.9 billion.
The shares opened for trading at 11:19 a.m. after a period of “price discovery” during which traders on the floor of the exchange try to corral demand for the stock. Speaking on the floor of the exchange, Glenn Carell, director of NYSE floor operations for Global Trading Systems, said the price discovery took a long time because of heavy demand from buyers who didn’t get allocations they wanted in the IPO itself. Carell expects the stock to end its first day of trading around $24 or $25 a share.
Sourced from: money.cnn.com
Do you use snapchat? I do not but obviously many people do. What do you think of it?