Snap tops expectations in pricing of long-awaited IPO

They will list on Thursday on the New York Stock Exchange.

On the public markets, however, Snap's market cap now sits at about $20 billion at the shares' expected price, higher than Snap's earlier proposed range of between $16.2 billion to $18.5 billion. While its app has proven immensely popular, there was some question as to how Snap would ultimately live up to its multi-billion dollar valuation and make investors money. Especially for those investors who missed out on Facebook, which went public in May 2012 at $38 a share and now trades for more than $137. A representative from Snap declined to comment on the pricing discussions. The company is hoping to go public with a valuation of $24 Billion and a per share price of $17. That makes it the largest USA tech IPO since Alibaba raised $25 billion in 2014, and the largest for a US -based tech company since Facebook's 2012 $16 billion offering, according to Dealogic.

But this was largely to be expected, as those prices are often lowballed in order to gauge initial interest as Wall Street and Snap settle somewhere in the middle that will ensure that everyone gets paid out and the stock doesn't end up dropping off on its first day of trading. In 2016, Snap reported a $514.6 million net loss on revenue of $404.5 million, after losing $372.9 million on $58.7 million in revenue the previous year.

The feature, which is similar to Snapchat's Stories, has 150 million daily active users worldwide.

The official listing will be Snap Inc.

The IPO is keenly anticipated by investors, especially if it could serve as a bellwether on how stock market debuts might go for other hot startups such as Airbnb, Spotify or Uber.

According to a new report from The New York Times, Snap has been working on a drone.

While Snap's finances are not public, research firm eMarketer has estimated that Snapchat would generate almost $1 billion this year from advertising. Before its offering, Snap had raised about $2.7 billion in funding from investors such as General Catalyst, IVP, Coatue Management and Benchmark.

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