Snap prices IPO between $21 and $23 per share

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.

Source: CNBC