Snap Inc. priced the shares in its initial public offering at $17 each, above the marketed range, according to a person with knowledge of the matter.
At that price, Snap has a market value of about $20 billion, based on 1.16 billion shares outstanding after the IPO. Based on the number of fully diluted shares -- 1.39 billion, the person said -- the market value is $23.6 billion. The person asked not to be identified because the information isn't yet public.
The maker of disappearing photo-app Snapchat, based in Venice, Calif., is the first technology or communications company to go public in the U.S. in 2017. It's also the biggest social-media listing since Twitter more than three years ago, and the daily compulsion of more than 150 million -- mostly millennial -- users. Twitter use has stalled around 320 million monthly users.
Snap offered 200 million shares for $14 to $16 each. Orders for the IPO were concentrated at about $17 to $18 a share, people familiar with the process said Tuesday.
The stock will start trading Thursday, listed on the New York Stock Exchange under the symbol SNAP.
Morgan Stanley and Goldman Sachs Group Inc. led the offering. Goldman Sachs will be the stabilization agent, ensuring the first day of trading goes smoothly.
-- Bloomberg News