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We Now Have Full Details Of Snap's IPO

We Now Have Full Details Of Snap's IPO

Snap, the parent company of the social media platform Snapchat, announced further details to its upcoming initial public offering Thursday.

Snap made its IPO official in February and comes at a bit of an inconvenient time. Shares of its social media peer Facebook Inc (NASDAQ: FB) are trading within striking distance of its all-time highs of $135.49 while shares of rival Twitter Inc (NYSE: TWTR) plummeted after the company reported its alarming fourth-quarter results.

Related Link: More Money, More Problems? Snapchat's Losses Have Widened As Its Sales Have Grown

Snap's IPO also comes at a time when some analysts are suggesting that the social media fad has peaked.

Nevertheless, Snap is proceeding with its offering and made the following pieces of information public:

  • Shares will be priced between $14 and $16 per share.
  • Snap is valued at $19.5 billion to $22.2 billion.
  • Shares will be listed on the New York Stock Exchange under the ticket "SNAP."
  • Snap is offering 200 million Class-A common stock.
  • Snap could offer up to 230 million shares if its underwriters exercise the option to purchase an incremental 30 million shares.
  • Snap estimates the proceeds from the IPO will be $2.1 billion to $2.3 billion if shares are priced at $15.
  • At $16 per share, Snap could raise up to $3.6 billion.
  • Snap will use the proceeds for general corporate purposes, including working capital, operating expenses and capital expenditures.
  • Snap added it could use a portion of the net proceeds to acquire a complementary business, products, services or technologies.

Related Articles (FB + TWTR)

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