The Snap IPO means a huge payday for two VC firms

Snapchat traded under the ticker

The company offered 200 million shares of stock, putting the total value of the initial public offering at $3.4 billion.

Nevertheless, people are excited, though Snap's $17 a share pales in comparison to Facebook's IPO, where shares were priced at $38 a pop.

Unlike in most listed companies, people who buy the floated shares in Snap will not get any voting rights.

There was worry that Snapchat would not perform well at their IPO as the company saw a slow down in use with the launch of similar features by Instagram and Facebook.

Snapchat averaged 158 million daily active users for the fourth quarter of 2016, an increase of 48 per cent year over year but up only three per cent sequentially from 153 million in the third quarter.

Some Silicon Valley observers say the IPO should encourage other growing tech companies to go public, even if they're not yet showing a profit.

Analysts Set Viavi Solutions Inc (VIAV) Target Price at $8.71
Following the completion of the sale, the director now directly owns 94,156 shares of the company's stock, valued at $802,209.12. According to their observations and findings, the stock could provide a high EPS of $0.12/share and a Low EPS of $0.08/share.

Jordan Hiscott, chief trader at Ayondo Markets, added: "Snap is undoubtedly the most talked-about tech IPO since Facebook and it's fantastic when you think of its humble beginnings just six years ago".

Bernadette Tansey is Xconomy's San Francisco Editor.

Moreover, 26-year-old Spiegel will continue to hold a stake of about 17 percent in the company, valued at $4.05 billion.

And Snap Inc.'s founders and early investors are set to rake in some major cash selling off some of their own shares. Spiegel planned to sell 16 million shares as part of the IPO, netting another $272 million. Plus, user growth stagnated in the final quarter of past year.

Snap's IPO is one of the most anticipated for a technology company since Twitter's stock market debut in 2013. The company saw a solid first day of trading, but then saw a lot of volatility in the following months.

While Snapchat is a camera-driven app-the majority of messages sent between users contain videos or photos taken with users' phones-it seems a stretch to think that this is what CEO Evan Spiegel means by "camera company". Last year, it reported sales of $405 million and a net loss of $515 million.

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