As the opening auction for Snap stock continues on the exchange, pricing indication has crossed to $22 to $24 a share. Here are the Snap IPO expectations.
03 March, AtoZForex – Snap Inc. stock floated about 20% of its outstanding shares. Previously, the tech companies have sold 19% of their shares in their IPO that have gone public since 2010. Facebook sold about 20%, Alibaba sold 15%, Twitter sold 15% and Google only 8%. Moreover, the Snap’s In. stock set for the trading pop after $3.4 billion IPO.
Snap IPO expectations
Snap Inc’s stock was set to rally on their first day of trading session in New York on Thursday. Previously, the shares opening up at between $22 and $24 per share, after the IPO valued on Wednesday at $17 per stock. The Snap’s IPO was oversubscribed by more than 10 times, hiking the chances of a pop on the first day of trading. The investors are still waiting for the Snap Inc. stock to launch into the secondary market.
Moreover, the company wants to focus on securing mutual funds as long-term investors instruments rather than hedge funds. The investors bought the Snap Inc. shares disregard having no voting power. Moreover, the new feature for an IPO at odds with rising concerns about corporate governance over the past few years from fund managers looking to increase influence over executives.
What does Morgan Stanley say?
Morgan Stanley Commented:
“Isn’t that the ultimate example of bubble trouble? So I say we are in a bubble, there is no value and investors should take a lot of risk off the table,”
“The other view which I’m afraid I agree with is that we are in a cycle, we are at the top of the cycle, valuations show absolutely no value and then Snap comes along.”
Snap started trading on Thursday on the New York Stock Exchange under the symbol SNAP.
Think we missed something? Let us know in the comments section below.