March 1 Snap Inc, owner of popular
messaging app Snapchat, raised $3.4 billion in its initial
public offering on Wednesday, more than it had sought, in the
most eagerly awaited technology IPO since Chinese e-commerce
giant Alibaba went public in 2014.
The successful IPO pricing clears a major hurdle for Snap,
which will go public without having yet turned a profit. The
company's losses widened last year, and it is experiencing
decelerating user growth in the face of intense competition from
larger rivals such as Facebook.
Despite the challenges in converting "cool" into cash, Snap
clinched a valuation of $24 billion, the richest valuation in a
U.S. tech IPO since Facebook in 2012. It will list on the New
York Stock Exchange on Thursday.
Snap priced 200 million shares on Wednesday night at $17 per
share, above its indicated range of $14 to $16 dollars a share.
(Reporting by Lauren Hirsch in New York; Editing by Meredith