![]() But if you include all the shares the company plans to make available to employees as potential bonuses and compensation awards - what are known as RSUs or restricted stock units - the company is valued at $24 billion. That’s based on the 1.16 billion total shares outstanding. It’ll likely be volatile throughout the day given how hot the market altogether has been running.Īt the IPO, meaning last evening, Snap is worth just under $20 billion. Update: As of 10 am ET, CNBC reports early indications show investors willing to pay about $21 to $23 a share. Every dollar above $17 is every dollar Snap doesn’t get (since it already sold for $17).īut you want underwriters and investors to make some profit, so Snap wants shares to go higher, maybe 20 or 25 percent higher, but much more than that is money Snap left on the table. Once it starts openly trading today, the underwriters will sell on the open market. ![]() Remember, the $17 a share is what Snap (and its insiders) sold shares for in the IPO. Morgan, Deutsche Bank, Barclays, Credit Suisse, Allen & Co.), who set that figure want to make sure it’s not too high or too low. The tricky thing about pricing it at $17 is that the underwriters (Morgan Stanley, Goldman Sachs, J.P. Some portion opens up for trading sooner, depending on what class of shares the investors own. The company locked up about one-fourth of those shares for about a year, according to an SEC filing. Of the 200 million shares sold, not all of that will openly trade right away. The company hasn’t said exactly how it’ll use that money, though some of it could easily be earmarked to pay off its $3 billion contracts for cloud services with both Google and Amazon. It could use that money for acquisitions or new hires or new technology. Snap will net about $2.3 billion in the IPO. And newly installed Snap chairman Michael Lynton, formerly head of Sony Entertainment, sold 54,907 shares for nearly $1 million. (In other words, that figure could have changed.) VC firms Benchmark and Lightspeed offloaded nearly 29 million shares for $340 million (Benchmark) and $146 million (Lightspeed). Of the 200 million shares, co-founders Evan Spiegel and Bobby Murphy each sold 16 million for a $272 million payday, according to the planned sale. That means investors wanted to buy 10 times more stock than Snap was willing to sell.īut wait! Snap could still make about 30 million more shares available if it wanted - what’s known as a “greenshoe” option, or an extra allotment based on investor appetite. It was oversubscribed by 10 times, according to sources. ![]() Snap sold 200 million shares at $17 each for $3.4 billion, above the initial range of $14 to $16. Here’s how to understand the initial numbers: The company’s shares will start openly trading on the NYSE this morning around 11 am ET under ticker symbol SNAP. Yet deeper structural impediments show that this option is not as simple as it seems.Snap, the company behind Snapchat, raised $3.4 billion in its IPO yesterday, giving it a market value (for the time being) of just under $20 billion. One obvious way to tackle gender inequality in economics is simply to promote more women to leadership roles within the discipline. Women Leaders in Economics: Overcoming the Challenges
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