Snap, the parent company of messaging app Snapchat, today disclosed that it has priced its stock at $17 per share, effectively raising $3.4 billion in its initial public offering (IPO). Snap will start trading on the New York Stock Exchange (NYSE) under the symbol SNAP tomorrow.
Snap’s underwriters are getting 30 days to buy an additional 30 million shares of the company’s Class A common stock, according to a statement.
Snap first publicly filed its form S-1, kicking off the process of going public, at the beginning of February. Two weeks later, Snap set an initial price range of $14 to $16 per share and said it was aiming to sell 200 million shares, meaning it would raise between $2.8 billion and $3.2 billion. But today Snap is going slightly above its estimated range.
Given the share price for the IPO, Snap is now valued at almost $24 billion, as the Wall Street Journal reported.
For context, Nutanix priced its stock at $16 per share and raised $237 million in its IPO in September, and that amount is larger than usual for technology IPOs in recent years. Facebook, meanwhile, priced its stock at $38 per share and raised $16 billion in its IPO in 2012. Twitter priced its stock at $26 per share and raised $1.8 billion in its IPO in 2013.
Snap cofounders Evan Spiegel and Bobby Murphy each controlled 44.3 percent of the company before the IPO, as my colleague Ken Yeung reported. Snap’s two biggest investors are Benchmark Capital and Lightspeed Venture Partners.