There is more than $10 billion of demand for Snap's hot IPO so far, according to people familiar with the situation who declined to be named because the information is private.
Snap's public offering is the biggest tech IPO in recent memory.
The company is seeking to raise as much as $3.2 billion at a valuation of as much as $22 billion. Given the more than $10 billion in demand, that suggests there is at least $6.8 billion in orders over what Snap is seeking in its sale.
In other words, Snap's IPO is three times covered, or oversubscribed, in Wall Street parlance. The heavy demand suggests Snap could raise its offering price, or increase the size of the stake, if it so chooses.
It's too soon for Snap to know whether it should do so, according to a person with knowledge of the matter. It can also price the IPO above the stated $14 to $16 a share range without changing its terms.
Snap kicked off its roadshow last week and has given meetings to hundreds of investors in London, Boston and New York this week. The company is planning to hold meetings in Los Angeles and San Francisco early next week, according to a schedule obtained by Business Insider. It is expected to set a price for the shares on March 1, and begin trading the next day.
The banks leading the deal, led by Morgan Stanley, Goldman Sachs, Deutsche Bank and JPMorgan, are still accepting orders, and will close the order book on Tuesday. They're expected to allocate a hefty chunk of the available shares to a handful of big investors.
Snap did not return calls seeking comment. IFR reported earlier Friday that the deal was oversubscribed.
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