After a difficult year for technology IPOs, SNAP Inc. (SNAP) turned the tide, by going public yesterday in an oversubscribed IPO that saw shares gain 44% by end of day. SNAP, the owner of the social media platform snapchat, raised $3.4 billion, surpassing the $4.3 billion raised from 26 technology IPOs on US exchanges last year.
SNAP founders Even Spiegel and Bobby Murphy implemented a multiple class structure, not unlike the IPO structure of other technology firms, but with zero voting rights. This is considered unusual, even by technology industry standards. Alphabet (GOOG) founders Sergey Brin and Larry Page gave themselves disproportionate voting power back during their 2004 IPO allowing them to control almost 60% of voting rights. Mark Zuckerberg of Facebook (FB) followed suit in 2012 only to strip investors of their voting rights last year in order to maintain 60% of voting rights while donating a substantial portion of his shares to his foundation.