The first Tech IPO of the year arrived at the start of the month, and not a moment too soon.
The company behind popular social media platform Snapchat launched its IPO on March 1st, executing the deal on Ipreo’s Equity Bookbuild system. Snap slots in as the fourth largest IPO since 2012, behind Alibaba ($25.0B – also executed on Ipreo’s EBB), Facebook ($16.0B), and Citizen’s Financial Group, Inc. ($3.5B).
The $3.4B debut immediately became the biggest IPO of 2017, the largest IPO since the aforementioned Citizen Financial Group’s September 2014 debut, the biggest Tech IPO since Facebook landed in 2012 (and the third largest Tech IPO since 2001), and the largest ever IPO to arise out of the Los Angeles area. Snap. Inc. is also the 19th Tech issuer to raise greater than $1.0B in proceeds since at least 2001.
Deep breath. There’s more!
Snap’s 44.00% jump in its first day of trading marks the greatest one day pop of the year, ahead of Kimbell Royalty Partners’ 14.67% gain and the largest since iRhythm Technologies first day gain of 53.24% in October 2016. In comparison with the four IPOs that raised over $3.0B in the last six years (2012 – 2017 YTD), Snap’s 44.00% rise surpassed Alibaba’s 38.10%, Citizen Financial Group’s 7.35%, and Facebook’s 0.61% jump in their first days on the market.
Despite the fanfare surrounding Snap Inc., the Tech has seen a bit of a drop off the past few years. 2015 and 2016 saw a total of 42 Tech IPOs hit the market, after 43 landed in 2014 alone (which itself followed the 39 and 35 IPOs that arrived in 2013 and 2012, respectively), and as of right now, there are only four other Tech IPOs in the current six-month backlog.
Snap’s impressive debut couldn’t have come at a better time.