Snap started trading at $24 a share on the New York Stock Exchange on Thursday, rising 41.2 percent from its pricing at the open.
About 100 million shares changed hands in the first 30 minutes of trading — by far the most active stock on the NYSE — after it opened shortly before 11:20 a.m. on Thursday in New York. The stock last traded around $25 a share, up about 48 percent, around 3 p.m. ET.
The company, trading under the ticker SNAP, priced its 200 million share public offering at $17 a share on Wednesday. The IPO was 12 times oversubscribed, sources said.
The opening price of $24 puts the company's market capitalization at about $33 billion, about the size of Marriot and Target. Twitter's market cap is about 11 billion, while Facebook's is about $395 billion.
The young ephemeral photo messaging company posted a $515 million loss last year. Nonetheless, investors have bet on its quickly growing revenue and visionary leader, 26-year-old co-founder CEO Evan Spiegel.
Mark Lennihan | AP
Snapchat co-founders Bobby Murphy, left, and CEO Evan Spiegel sign a guest book at the New York Stock Exchange as Snap celebrates its IPO, Thursday, March 2, 2017.
Spiegel arrived at the stock exchange on Thursday morning to ring the bell, with supermodel fiancee Miranda Kerr in tow, documenting with pictures on the app.
The Venice, California-based company, which serves augmented reality and cinematic advertisements to its young adult audience, could be a bellwether as other start-up giants, such as Airbnb and Uber, mull a public offering.
Snap enters the public market a day after the three major U.S. stock indexes posted their best session of the year.
Here's how the company stacks up so far to other big techIPOs, according to CNBC analysis of data from FactSet and Renaissance:
- Facebook went public on May 18, 2012, priced at $38 per share. It gained only 0.61 percent in its debut closing at $38.23.
-Deal Size: Almost $16 billion - Twitter went public on Nov. 7, 2013, priced at $26 per share. It gained 72.69 percent in its debut closing at $44.90.
-Deal Size $1.82 billion (shares used to calculate do not contain the overallotment) - Alibaba went public on Sept. 19, 2014, and priced at $68 per share. It gained 38.07 percent in its debut closing at $93.89.
-Deal Size $21.77 billion (not including overallotment or green shoe) - LinkedIn went public on May 19, 2011, and priced at $45 per share. It doubled in its debut, gaining 109.44 percent to close at $94.25.
-Deal size $352.8 million
Source:http://www.cnbc.com/2017/03/02/snapchat-snap-open-trading-price-stock-ipo-first-day.html
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