What Is the Snapchat IPO Price?

Snapchat IPO priceThe Snapchat IPO price could be between $14 and $16 per share.

Snap Inc., the parent company of Snapchat, released a regulatory filing today (Feb. 16) that valued the company between $19.5 billion and $22.2 billion.

Snapchat also said it will sell 200 million Class A common stock shares. The shares will trade on the New York Stock Exchange (NYSE) under the symbol SNAP.

The underwriters of the Snapchat IPO have the option to purchase an additional 30 million shares.

According to CNBC, Snapchat expects its net proceeds from the IPO to be between $2.1 billion and $2.3 billion if the underwriters purchase Class A shares. That is on the basis that the SNAP stock price trades for $15 per share.

If SNAP stock trades for $16 per share, Snapchat expects net proceeds will be $3.6 billion.

According to the SEC filing, Snapchat will use its IPO money for working capital, capital expenditures, and operating expenses.

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Snapchat may also use the money to acquire complementary products, services, technologies, or businesses.

However, the tech company said it was not contemplating any acquisitions at this time.

This Snapchat stock news means SNAP could trade as early as March, which is why investors have been asking us if Snapchat stock is a good investment.

So ahead of the public offering, we want to make sure our readers know exactly how to play the Snapchat IPO date...

With the Snapchat IPO Price Revealed, Here's How to Play Snap

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Money Morning Director of Tech & Venture Capital Research Michael A. Robinson has an important warning about IPOs.

"I generally tell retail investors to avoid buying an IPO at the open because the insiders have already made all the money available at the debut," Robinson told me.

You see, it's never retail investors who profit from IPOs.

Big banks and large institutions are always the ones who get rich from public offerings.  For example, institutional investors were able to buy shares in Twilio Inc. (NYSE: TWLO) for $15 per share before it went public on June 23, 2016.

But when retail investors were able to buy TWLO stock on June 23, 2016, they had to pay $23.99 per share.

However, Robinson does have an exception if you believe SNAP stock is a good long-term investment.

"My exception to this rule is to put in a limit order that is fairly tight from the offering price. Otherwise the risk is you buy at the top and then go upside down. That's a big risk to carry with a new issue that hasn't hit the lock-up date," Robinson said.

We know that our readers have a lot of questions about Snapchat stock. That's why we developed this free Snapchat stock guide.

In it, you'll learn how Snapchat works and how Snapchat makes money.

You can find the guide, right here.

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