Snap Said to Price Shares in IPO at $17 Each, Above Range

Snap Said to Price Shares in IPO at $17 Each, Above Range

On the public markets, however, Snap's market cap now sits at about $20 billion at the shares' expected price, higher than Snap's earlier proposed range of between $16.2 billion to $18.5 billion. Snap declined to comment.

Snap said in its regulatory filing last month it took in $404 million in revenue a year ago but lost $515 million.

In June, eMarketer had forecast 66.6 million US users for this year. We will update this article when more details becomes available. The shares are scheduled to begin trading on Thursday.

Snap's growth is in the spotlight these days, as the company is getting ready to go public this week and price its IPO on Wednesday, March 1. Owners of class B stock are entitled to one vote per share, which can be converted into a share of class A stock. After the IPO, the class C stock will represent 88.5% of the voting power, meaning outside stockholders won't have any control over matters that come before the board of directors.

Any new tech IPO would receive lots of attention, he notes, and while "there are many questions" about Snap's future-i.e., its ability to turn a profit, the company "has many things going for them", Kennedy says.

The rebranding itself - from Snapchat to Snap - mirrors the company's efforts to expand beyond just Snapchat, and a Snap camera drone could bolster its position as a camera company.

Calacanis, an investor in many startups and dubbed as Tesla's savior for being the first Model S customer, presented the bullish side of the trade.

At that price, the highly anticipated IPO would be the largest in the USA since Alibaba went public in 2014 and would give the slow market for tech IPOs a boost. The company is hoping to go public with a valuation of $24 Billion and a per share price of $17.

According to the filing, 158 million people use Snapchat daily, and over 2.5 billion Snaps are created every day. After all, this is the same confident guy that said no to a $3 billion all-cash acquisition offer from Facebook in 2013, because he thought he could get more money for his young company. The drone market is expected to be worth $127 billion by 2020, which makes a sizable target for any company.