Snapchat IPO earns $28.3 bn, soars 44 pc on market debut

At one point the stock hit a high of $26.05 and a market value of $29.1 billion.

Snapchat IPO earns $28.3 bn, soars 44 pc on market debut

Snap Inc's shares ended up 44 per cent on their first day of trading as investors focused on hottest technology stock offering in 3 years.

On Thursday, Snap Inc's shares closed at $24.48 on the New York Stock Exchange, well above the initial public offering price of $17 per share on Wednesday, bringing company's value to $28.3 billion.

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 Wednesday, giving the company a market value of $28.3 billion, on a par with CBS Corp and Target Corp.


At one point the stock hit a high of $26.05 and a market value of $29.1 billion.

Snapchat is popular for people under 30 for its disappearing messages and applying bunny faces and vomiting rainbows onto selfies filters for selfies, which is now being copied and used by other social media websites. The owner of Snapchat raised $3.4 billion in its IPO on Wednesday, more than the $3 billion Facebook Inc offered to pay for the company in 2013.

The company is poised to increase its deal size to $3,9 billion with a full greenshoe option to issue more shares likely to be exercised. This makes it Snapchat IPO biggest US technology IPO since Alibaba Group Holding in 2014, without even making any profit.

Secretive Snap co-founder Evan Spiegel earned $272 million on the offering.

Despite a nearly seven-fold increase in revenue, Los Angeles-based Snap's net loss widened 38 per cent last year to $514.6 million. It faces intense competition from larger rivals such as Facebook's Instagram as it grapples with decelerating user growth.

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