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Snapchat IPO Information

Snap details on date, share price, and other stock information.

Snap, the parent company of the messaging app Snapchat, has filed to go public recently and is expected to begin trading as early as March 2 (however there have been instances where IPOs have been delayed). Snap, which calls itself a “camera company” is looking to raise as much as $3.2 billion by selling 200 million shares for between $14 – $16 per share. That would put it at a market capitalization in the range of $19.5 billion to $22.2 billion. Their latest private valuation was $17.8 billion.

Snap’s IPO is the biggest tech offering since Alibaba back in September 2014. With a lack of supply of recent public offerings combined with pent up demand, I can see Snap’s offering being oversubscribed, consequently, it wouldn’t surprise me if Snap’s stock has a huge jump in price in its first trading day (or days that follow).

Let’s compare other tech companies in their first day of trading:

Alibaba group: up ~38%
Facebook: up ~0.6% (reminder though that there were technical difficulties on the exchanges that day)
Twitter: up ~72%
LinkedIn: up ~100%

What’s unique about Snap’s IPO?

Snap has three classes of common stock: Class A, Class B, and Class C. Upon the offering, the public will be able to obtain and trade Class A shares. It’s important to note that these shares do not have any voting power. Consequently, Snap will be the first company ever to go public without issuing voting shares to the public.

Class B shares will be entitled to 1 vote per share, and Class C shares will be entitled to 10 votes per share. Guess who gets Class C shares…that’s right, good ‘ole Snap CEO Evan Spiegel and CTO Rob Murphy and both combines have 88.5% voting power. As a result, potentially each of the two have “the ability to control the outcome of all matters” that are submitted to stockholders for approval. It must be nice…all that Snap power…Mark Zuckerberg-esque.

SnapchatAway!

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