Snap Inc.
a). A company going public; is a period when any business organization decides to go through an initial public offering. Whereby the business transits from being private to the public where anyone is allowed to invest or own several stocks in the company. Snap the mother of Snapchat, went public on the second of March 2017 when the organization decided to trade at $24 per share on the New York Stock Exchange market.
- b) The Snap Inc. made its debut on the prominent New York Stock Exchange in March 2017, having an IPO price of $3.4 billion.
- c) An active IPO valuation centers on consumer demand for the corporation’s shares and other factors that are; industry reputation, growth prospects, earning history of an organization, location, and business management.
- d) The 23% stock fall for Snap company after its first quarterly report was a rough debut for Snap, and most investors were disappointed. The reason for the downfall, as confirmed by the Snap co-founder Evan Spiegel, was low net income and revenue of about $380 million due to the slow rate of user growth.
- e) The pricing an IPO is as much art as a science because, excluding the practical bit of pricing the IPO, the organization’s administration departments should have the ability to make the company’s operations and financial outcome appealing. f) Snap going public was not a mistake because, according to the earlier IPO, the analysis showed that Snap could work and make enough profits during business expansion attained by going public. But unfortunately, the situation turns negative by the company suffering a loss of $380 million.
- g) Spotify IPO process was way different from that of Snap, whereby Spotify considered listing its stock without an IPO process. This startup allows different investors to get as much as they can for their shares.
Works Cited
McBain, Michael L., and David S. Krause. “Going public: The impact of insiders’ holdings on the price of initial public offerings.” Journal of Business Venturing 4.6 (1989): 419-428.
Meager, Lizzie. “Why Snap’s no-vote shares IPO won’t catch on.” International Financial Law Review (2017).