SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Investing in Exponential Growth
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: Paul H. Christiansen12/1/2016 3:07:33 PM
   of 1084
 
Snapping up Snap Ahead of IPO Proves Tough



Much like the crowds lining up to buy Snap’s new Spectacles, investors are rushing to grab stock in the owner of Snapchat before it goes public next year. But they’re finding little to buy as they scout the typical sources of stock—employees and other investors.

Those existing shareholders are rebuffing offers to sell, even though buyers are willing to pay as much as 25% above Snap’s most recent fundraising valuation of about $18 billion, brokers say. That’s likely because shareholders are aware that the price could soar after the IPO, when a wider group of investors will be able to buy Snap stock. Snap, one of the most anticipated IPOs in tech in recent years, is reportedly expected to be valued well above $20 billion in the offering.

The shortage of available Snap stock will likely intensify demand for shares in the public offering, and could increase the chance that the stock pops afterwards. The shortage, coming several months before Snap’s expected IPO, is a stark contrast to the months before the public debuts of Facebook and Twitter, when shares traded hands in large amounts. How that pre-IPO trading affected demand in the IPOs is hard to say. Facebook’s IPO famously wasn’t well received, although that was likely more due to an increase in the selling price before the IPO. Twitter’s stock had a big first-day pop.

theinformation.com

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News