Snap Incorporated, the company behind Snapchat, the successful messaging app went public on March 1, 2017.
The company with an estimated value of $19.5-$22.3 billion raised in excess of $3billion after launching its Initial Public Offering (IPO) on the New York Stock Exchange (NYSE) and effectively made the company’s shares available for trading from March 2.
Interestingly, Eagle Global Markets (EGM) is helping investors trade this Tech IPOs in Naira. Eagle Global Markets not only makes trading global markets more accessible but also addresses issues such as a local currency risk and having to contract with foreign entities.
If you are in Nigeria and think the listing on the NYSE makes the Snap equity out of your reach then think again! The asset is available on the EGM CloudTrade platform and can readily be traded in Naira.
Considering this biggest tech IPO since Facebook Inc, Kola Adebayo, Head of Market Analysis at Eagle Global Markets noted that early investing in technology companies can be one of the wisest financial decisions to make.
Taking a look at how others such as Facebook and Google have soared to very profitable heights from when they went public till now.
Snap, which has biggest U.S. IPO since 2014 came out with a bang last Thursday on the New York Stock Exchange. Shares of Snap (SNAP), the parent company of messaging app Snapchat, closed up 44 percent Thursday after opening at $24 above its issue price. The company priced its shares at $17 a share Wednesday to raise $3.4 billion.
“If you are an investor with little or no knowledge of how to trade, you can get dedicated support, training and free focused market analysis on how to get started with this asset or any other asset for that matter, among the rich equity classifications, available with Eagle Global Markets (EGM)”, Adebayo said in a recent note.
On what makes the Snap IPO so attractive, he said: “First of all Snapchat’s founders are pushing for a $20-$25 billion valuation for the company –centred around the apps active user base and huge daily activity figures. This in turn forms the basis for revenue via advertising.”
Adebayo believes that this valuation made Snap IPO pricier than that of Facebook, Google and even Alibaba at the time of their own IPO.
Ahead of the IPO, Snapchat CEO Evan Spiegel had ‘road shows’ in London, New York and Paris to touch base with asset management firms and hedge funds in order to properly clear any leftover doubts as to how profitable trading the IPO will be.
Retail and corporate investors/traders in Nigeria can look forward to a chance at ‘getting into the market early’ with the provision being made on the EGM platform.
Iheanyi Nwachukwu
