Snapchat prices shares at US$17, values company at US$24b

Snapchat prices shares at US$17, values company at US$24b
PHOTO: AFP

LOS ANGELES - Snap Inc, the maker of Snapchat, will begin selling its shares for $17 (S$24) a piece when it starts trading on the New York Stock Exchange Thursday morning, according to Reuters.

This puts the company's valuation at $24 billion, and allowed it to raise around $3.4 billion in funding.

The company told financial regulators earlier this year in a filing that it intends to sell 200 million class A shares, which will come without voting rights.

Snap was widely expected to price its shares between $14 and $16, which would have valued the company anywhere between $19.5 billion and $22.3 billion.

However, there had been signs in recent days for a lot of demand, leading some to suggest that the company may price its shares at up to $18 per share.

The counterpoint for a high share price was that it could lead to Snap trading flat on opening day, something companies try to avoid to make their market entry look like a success story.

The fact that Snap nonetheless went for an above-range price suggests that it is confident in demand among investors.

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