Snap's shares pop after year's biggest IPO
By Lauren Hirsch
NEW YORK (Reuters) - Snap Inc's (SNAP.N: Quote) shares ended up 44 percent on their first day of trading as investors flocked to buy into the hottest technology stock offering in three years, overcoming doubts about the loss-making messaging app company's slowing user growth.
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 (CBS.N: Quote) and Target Corp TGT.N.
At one point the stock hit a high of $26.05 and a market value of $29.1 billion.
The owner of Snapchat, an app popular with young people for its disappearing messages, raised $3.4 billion in its IPO on Wednesday, more than the $3 billion Facebook Inc (FB.O: Quote) offered to pay for the company in 2013.
With a full greenshoe option to issue more shares likely to be exercised, the company is poised to increase its deal size to $3.9 billion.
That makes it the biggest U.S. technology IPO since Alibaba Group Holding Inc (BABA.N: Quote) in 2014, despite the fact that Snap has never made a profit.
Secretive Snap co-founder Evan Spiegel, who usually favors sweats or a button-down shirt, showed up to the floor of the exchange in a suit and tie to ring the opening bell before leaving the building to watch festivities away from the spotlight he famously avoids. He earned $272 million on the offering.
Among the traders on the floor, men and women carried the company's video-camera glasses called Spectacles and stuffed versions of Snap's smiling ghost mascot. Continued...