Venice-Based Snap Founders Become Billionaires Within Hours of IPO Offering
Posted: Thursday, March 2, 2017 – 2:31 PM
(CNS) – Venice-based Snap Inc., parent company of the photo/video- sharing Snapchat phone app, went public Thursday, opening at $24 a share, then rose to $25 — far above the initial share price of $17.
The company offered 200 million shares of stock, putting the total value of the initial public offering at $3.4 billion. Shares will be traded on the New York Stock Exchange under the symbol SNAP.
Snap filed federal paperwork in February to move forward with the initial public offering. That paperwork initially estimated the value of the stock offering at $3 billion.
“Our flagship product, Snapchat, is a camera application that was created to help people communicate through short videos and images,” according to the company’s filing with the Securities and Exchange Commission.
“We call each of those short videos or images a Snap. On average, 158 million people use Snapchat daily, and over 2.5 billion Snaps are created every day.”
The filing also touted the company’s latest innovation, Spectacles, which are sunglasses that connect video directly with Snapchat.
According to the document, the company had revenue of $404.5 million in 2016, up from $58.7 million in 2015. But the company still recorded a loss of $514.6 million last year.
The company was co-founded by Evan Spiegel and Bobby Murphy, who created Snapchat in 2011 while attending Stanford University.