Snapchat prices shares at $17, bringing company valuation to $24 billion
Snap Inc, the maker of Snapchat, will begin selling its shares for $17 a piece when it starts trading on the New York Stock Exchange Thursday morning, according to Reuters. This puts the company's valuation at $24 billion.
The company is set to officially announce its share price after the close of markets Wednesday. It told financial regulators earlier this year in a filing that it intends to sell 200 million class A shares, which will come without voting rights.
Snap was widely expected to price its shares between $14 and $16, which would have valued the company anywhere between $19.5 billion and $22.3 billion. However, there had been signs in recent days for a lot of demand, leading some to suggest that the company may price its shares at up to $18 per share.
The counterpoint for a high share price was that it could lead to Snap trading flat on opening day, something companies try to avoid to make their market entry look like a success story. The fact that Snap nonetheless went for an above-range price suggests that it is confident in demand among investors.