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eToro, a multi-asset broker and social trading network, said it will make Snap Inc. shares available for trade from the firs day of trading after its initial public offering (IPO).
Snap Inc. is among the most closely-followed tech companies in the past years. It is behind the renown photo-sharing app Snapchat. The company is expected to float on the New York Stock Exchange (NYSE) in March. It is aiming to raise up to $3.2 billion and to hike its valuation to $25 billion.
Snap Inc.’s IPO is considered one of the largest US-listed tech IPOs. Snapchat has some 158 million active users daily. For 2016, the company generated a revenue of $404.5 million, which represents a 600% growth from a year earlier ($58.7 million in 2015). However, it reported a net loss of $514.6 million last year.
According to eToro, the company has said it may never achieve profitability. It steadily increases spending on research and development and employees and will probably continue investing in expansion and new products.
“Companies usually use IPOs as a means of generating quick revenue – but Snap will obviously not “sit” on the money, and use the cash influx to expand its services further,” eToro noted.
Another forex brokerage, IG Group, recently launched contracts for difference (CFDs) on the potential market cap of Snap Inc. ahead of its IPO. Once the listing takes place, the broker’s clients can spread bet or trade CFDs on how the company performs, or buy and sell its shares with a share dealing account.
The eToro brand combines the companies eToro UK, regulated by the Financial Conduct Authority (FCA), and eToro Europe, regulated by the Cyprus Securities and Exchange Commission (CySEC). The brand is active in more than 170 countries worldwide. It has more than 4.5 million clients with more than 200 million opened trades.
It provides social trading services and its offering includes contracts for difference (CFDs) on forex, commodities, indices, stocks, and exchange-traded funds (ETFs).
