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Snap's IPO was much more expensive than those of other tech companies

Snap's IPO was much more expensive than those of other tech companies

On Thursday, Snapchat's parent company Snap expected to start trading on the New York Stock Exchange - under the ticket SNAP - ending the long drought of high-profile initial public offerings.

Investors obviously were even more eager to get a piece of Snap than the company estimated - undeterred by Snap's steep losses and slowing growth of the Snapchat user base, which skews heavily toward teens and millennials. So it's only fitting he will come away with the biggest haul from the IPO. The company saw a healthy pop in its first moments of trading, opening at $24 - roughly 40 percent higher than the company's price of $17 per share, and far higher than the company's original $14-$16 range.

Spiegel and cofounder Bobby Murphy each sold 16 million shares in the IPO that earned them US$272 million apiece. Opinion is deeply mixed as to whether this is a fair reflection of the company's potential - it is yet to turn a profit and past year posted a loss of $515 million - or wildly optimistic.

Along with all his money, Spiegel and his co-founder will maintain control of the company. Those are worth $72 million at $24 per share. Unlike Spiegel, he's not entitled to a generous CEO Award. Earlier, Pisani had reported indications were around $21-$23 per share. "If they don't like how things are going, they can sell their stock".

But some analysts believed the company had been significantly overvalued. "It's a happy day at Lightspeed". Snap's senior vice president of engineering Timothy Sehn, chief strategy officer Imran Khan and chairman Michael Lynton also notched up big paydays.

What's unclear is whether the drone will follow the Spectacles into becoming a consumer product or be used by Snap itself in some other way.

Snap just needs millions more like Murphy willing to make time for yet another social network. Other public internet companies like Facebook and Google do not mention Snap in their quarterly and annual reports. And then there's its odd attempt to morph from a social platform into a newfangled camera company by developing new hardware in the shape of spectacles that post video to the platform (and possibly drones).


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