Posted March. 04, 2017 06:57,
Updated March. 04, 2017 07:17
Snapchat's parent company Snap successfully went public, which made its two 20-something co-founders billionaires worth 5.25 billion U.S. dollars.
Snap closed at 24.48 dollars per share, a 44 percent premium over its offering price of 17 dollars, on the first day on the New York Stock Exchange on Thursday. The company’s total market capitalization hit 33 billion dollars at Thursday’s close. The stakes held by co-founders Evan Spiegel (26) and Bobby Murphy (28), who own 210 million shares each, are now valued at 5.25 billion dollars.
Since most of Snap’s executives and staff members own hundreds of thousands to millions of shares per person, more than 100 millionaires will likely emerge following the initial public offering. On top of Snap employees, venture capital firms that invested in the tech company since early on are set to rake in handsome profits.
Snapchat, which Snap introduced in 2011, offers the function that makes photos and video clips disappear after viewing, and is gaining immense popularity among young generation. The service had 158 million users and posted 404.5 million dollars in sales as of the end of last year.