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By Anthony Hughes
NEW YORK, Feb 24 (IFR) - Next week's planned US$3.2bn IPO of Snap Inc, maker of the popular Snapchat app, is oversubscribed, market sources told IFR on Friday.
The much-awaited deal is scheduled to price on Wednesday, with the company set to begin trading on the New York Stock Exchange the following day.
Sources said underwriters told investors that the deal is oversubscribed at the marketing range of US$14-$16 per share, but they have yet to offer more specific pricing guidance.
Potential buyers have been plentiful at lunches in New York and London this week during the IPO's rodashow, though many have reservations about the company's future.
Investors have questioned the company's slowing user growth, which was just 3% in the latest quarter versus the prior quarter.
There are also doubts about Snap's ability to sell ads to the 158m daily active users of Snapchat, and how sticky these users will be amid competing products from the likes of Facebook and Google.
Some have also expressed reservation about the shares themselves, which do not come with voting rights.
Snap is planning to sell 200m shares in all, 55m of them by company insiders. (Reporting by Anthony Hughes Writing by Marc Carnegie; Editing by Paul Kilby and Shankar Ramakrishnan)