Shares in Snapchat were set to begin trading at around $22-$24 on Thursday (2 March), much higher than in its initial public offering (IPO), as Snap, the owner of the messaging app, made its stock market debut in NY.
All's forgiven now: Facebook shares now go for about $137. When the markets opened Thursday, Snap jumped to $24 a share.
Those pre-IPO shareholders sold 55 million Snap shares, but held on to the vast majority of their holdings.
Outgoing Sony Entertainment chief Michael Lynton is chairman of the Snap board. His shares in the company are worth $162 million.
Snap cofounders Evan Spiegel and Bobby Murphy added a combined $2.8 billion to their fortunes on Thursday - and became the only self-made billionaires in the world under the age of 30 to own a publicly traded company. They rang the opening bell on the NYSE today.
The exact timing of Snap shares trading will be up to the lead underwriters and their specialists will be taking the steps to meticulously match buyers and sellers, wrote IPOboutique.com in an email to clients.
Snap filed to go public in early February, showing a rapidly accelerating advertising business that went from $59 million in revenue in 2015 to almost $400 million in 2016.More news: Eagles issues at the National Football League combine
The two founders met at Stanford University and launched Snapchat in 2011.
Launched in 2011, Snapchat now has 158 million daily users.
Kids, teens, and young adults are the ones who use Snapchat the most, but it's the older generations who are more likely to be investors.
Proceeds from the U.S. IPO market were only 18.8 billion dollars previous year down from 86.6 billion dollars in 2014, according to Renaissance Capital. And the SF Growth Fund - the private school's student-run endowment fund that helps pay for scholarships and subsidize tuition - also got in one of Snap's early investments rounds for an undisclosed amount of money, according to the Silicon Valley Business Journal.
Pivotal Research analyst Brian Weiser also has doubts about Snap, and issued a target price of $10.
"It has a promising and innovative advertising offering, but so far it is still mostly unproven and hard to quantify its ultimate scale", he added.