The value of Snapchat’s owner has soared on its New York Stock Exchange debut after a flotation that valued the company at an initial $24bn (£19bn).
Snap began trading at $24 per share, representing a 41% increase on the initial offer price which was at the top end of market expectations. It later surged above $26 at one stage but closed the day 44% up.
The sale of 200 million shares demonstrated a frenzy of demand for the stock and it took almost two hours from the opening bell being rung for the opening price to emerge.
Naeem Aslam, chief market analyst at Think Markets, said of the trades: “30 million shares in the first minute tells you everything you need to know. The demand is simply too strong.”
The main question for investors ahead of the Initial Public Offering(IPO) was whether Snap represented a good financial bet given varied performances for similar stocks since their own market debuts.
The fact that the shares were offered at the top end of the range, at $17, was a good indicator of strong interest.