Stock Market

Snap rockets 40% and keeps on flying: Stock opens at $24/share



Snap started trading at USD 24 a share on the New York Stock Exchange on Thursday, soaring more than 40 percent from its pricing.

The company, trading under the ticker SNAP, priced its 200 million share public offering at USD 17 a share on Wednesday. The IPO was 12 times oversubscribed, sources said.

The young ephemeral photo messaging company posted a USD 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.

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 tech IPOs, according to CNBC analysis of data from FactSet and Renaissance:

Facebook went public on May 18, 2012, priced at USD 38 per share. It gained only 0.61 percent in its debut closing at USD 38.23.
-Deal Size: Almost USD 16 billion

Twitter went public on Nov. 7, 2013, priced at USD 26 per share. It gained 72.69 percent in its debut closing at USD 44.90.
-Deal Size USD 1.82 billion (shares used to calculate do not contain the overallotment)

Alibaba went public on Sept. 19, 2014, and priced at USD 68 per share. It gained 38.07 percent in its debut closing at USD 93.89.
-Deal Size USD 21.77 billion (not including overallotment or green shoe)

LinkedIn went public on May 19, 2011, and priced at USD 45 per share. It doubled in its debut, gaining 109.44 percent to close at USD 94.25.
-Deal size USD 352.8 million