Update – March 2: Snap is now estimating its opening to be between $21 to $23 per share.
Snapchat parent company Snap has revealed that it will price its IPO offering at $17 per share, which marks the highest public debut of a company since Facebook in 2012.
This pricing values the Snap at $24 billion USD. This puts the social media platform above the company’s original goal of selling approximately $3 billion in stocks at $15 per share for a valuation of $21 billion. The official pricing of the 200 million shares will be made available sometime on the evening of March 1st.
It was recently reported that the company was hoping for a pricing between $14 and $16 per share, while sources predicted a slightly higher pricing between $17 and $18.
During its last big round of funding, Snapchat was valued at $20 million. While Snapchat was unable to generate a profit before going public, Snap’s investors seem confident in the camera app that’s enthralled the teen population of the world.
Daily active user growth is slowing for Snapchat, a fact that further complicates its ambitions to eventually achieve a profit. While Snapchat has passed Twitter in daily active users, there are few signs that it will become a network that can rival Facebook.
It’s important to note that the stock Snap is selling comes with no voting rights, so investors will have no say in steering the company.