Snap Jumps in Debut After App Maker Raises $3.4B in IPO

Re:Snap Jumps in Debut After App Maker Raises $3.4B in IPO by jonknee on Thursday March 02, 2017 @11:45AM (#13775533)

Considering it went smoothly it doesn't remind me of Facebook's IPO at all. Twitter should be all the evidence you need of how hard it is to succeed selling advertising to a big audience. Snap might crush it, but I would give them a few earnings reports before comparing them to anyone.

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Re:Snap Jumps in Debut After App Maker Raises $3.4B in IPO by maxerickson on Thursday March 02, 2017 @11:48AM (#13775574)

Facebook's market debut showed that Facebook did an excellent job controlling and pricing the IPO. Banks complaining -> Facebook and insiders won.

This debut just shows that Snapchat wasn't in the driver's seat. Major holders are still mega wealthy though.

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Re:Snap Jumps in Debut After App Maker Raises $3.4B in IPO by jonknee on Thursday March 02, 2017 @11:53AM (#13775640)

No, it was a disaster that led to years of litigation. NASDAQ admitted it was their technical error and paid millions to settle lawsuits stemming from it.

This obsession by techies that you're leaving money on the table if your shares go up after an IPO is bizarre.

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Re:Snap Jumps in Debut After App Maker Raises $3.4B in IPO by toast0 on Thursday March 02, 2017 @12:43PM (#13776244)

> This obsession by techies that you're leaving money on the table if your shares go up after an IPO is bizarre.

If the company gets $X/share at the beginning of the day, and bankers get $X * 1.5/share at the end of the day, that feels like a big donation to Wall Street. If I'm an investor, I'd rather the company have all the capital than 2/3rds of the capital as well. It feels like if a company would sell a portion of the offering through the traditional channels, and the remainder at market prices throughout the first couple days of trading, it might better capture investment.

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Re:Snap Jumps in Debut After App Maker Raises $3.4B in IPO by ceejayoz on Thursday March 02, 2017 @12:27PM (#13776034)

> This obsession by techies that you're leaving money on the table if your shares go up after an IPO is bizarre.

How is it not leaving money on the table?

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Re:Snap Jumps in Debut After App Maker Raises $3.4B in IPO by maxerickson on Thursday March 02, 2017 @11:57AM (#13775704)

It priced 2 or 3 billion dollars over the early valuation estimates (a few weeks before the $38 debut, the roadshow was floating $32 as the top number).

It was a $30 million settlement.

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Re:Snap Jumps in Debut After App Maker Raises $3.4B in IPO by jedberg on Thursday March 02, 2017 @11:55AM (#13775675)

> Major holders are still mega wealthy though.

EDIT: I was wrong, that's just what they are selling today, not the total value of their shares. In which case, good for them!

It actually surprised me how little the founders got. Their shares are worth about $400M each. Certainly nothing to sneeze at, but usually when you're the cofounder of a 24 billion dollar company, you're a billionaire. :)

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Re:Snap Jumps in Debut After App Maker Raises $3.4B in IPO by jonknee on Thursday March 02, 2017 @11:58AM (#13775711)

That's because they are keeping most of their shares:

http://www.cnbc.com/2017/03/02/snap-ipo-what-evan-spiegel-bo...

> According to Snap's latest S-1 filing with the SEC from Feb. 27, Spiegel and Murphy plan to sell 16 million shares each on Thursday. The company opened at $24, after it priced its public offering at $17 a share. It's just a small fraction of the number of shares the co-founders own in Snap Inc. Both men will still have 97,164,485 after Thursday's sale.

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Re:Snap Jumps in Debut After App Maker Raises $3.4B in IPO by jedberg on Thursday March 02, 2017 @12:27PM (#13776032)

Oh I read the same article but I read it wrong. I thought they meant that would be the total value of the shares they hold after the IPO, not just what they are selling today. My bad.

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Re:Snap Jumps in Debut After App Maker Raises $3.4B in IPO by bduerst on Thursday March 02, 2017 @01:17PM (#13776619)

Precisely. Facebook came out on top with their IPO by gaining more cash than expected, the average Joe did not because they lost cash.

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Re:Snap Jumps in Debut After App Maker Raises $3.4B in IPO by DougN7 on Thursday March 02, 2017 @11:55AM (#13775671)

Groupon was also similar if memory serves. My prediction is Snap will be the Myspace of 10 years from now.

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Re:Snap Jumps in Debut After App Maker Raises $3.4B in IPO by chillydawg on Thursday March 02, 2017 @12:06PM (#13775790)

Groupon was a totally different business. Network effect didn't really add anything or give them lock in. Customers and businesses would go wherever prices were lowest. It was always doomed, really.

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