The valuation is more than double the size of rival Twitter and is the richest valuation in a US technology IPO since Facebook in 2012.

The Snapchat logo seen at a booth at TechFair LA, a technology job fair, in Los Angeles, California, US, January 26, 2017.
The Snapchat logo seen at a booth at TechFair LA, a technology job fair, in Los Angeles, California, US, January 26, 2017. (TRT World and Agencies)

Snapchat parent Snap Inc has priced its initial public offering higher than expected to give the popular social network a market value of $24 billion.

The share sale is the first test of investor appetite for a social-media app that is beloved by teenagers and 20-somethings, who use it to apply bunny faces and vomiting rainbows onto selfies, but faces a challenge in converting "cool" into cash.

Snap said it set its initial public offering share price at $17, above the expected range of $14 to $16, because of high investor demand.

TRT World's Arabella Munro has more.

158 million users

The company had targeted a valuation of between $19.5 billion and $22.3 billion.

At $24 billion, the IPO valuation was more than double the size of rival Twitter and the richest valuation in a US technology IPO since Facebook in 2012.

Whether the valuation is justified will be decided by the markets. Snap said in its regulatory filing last month it took in $404 million in revenue in 2016, but lost $515 million.

According to the filing, 158 million people use Snapchat daily, and over 2.5 billion Snaps are created every day.

Source: TRTWorld and agencies