09 March 2017
London
Reporter: Mark Dugdale
Snap crackles following popular IPO
Short sellers were quick to snap up shares of the parent company of picture messaging app Snapchat following its closely watched initial public offering.

Snap opened on 2 March at $24 per share, rising to a peak of $29.44 during the second day, before falling back slightly to close at $27.09, FIS Astec Analytics has reported. But the market wouldn’t support those prices and the stock closed at $21.44 on 7 March.

“This price is still well above most target prices for this issue, suggesting that a large volume of short sales would not be a surprise,” FIS Astec Analytics explained in a note on the stock.

Securities lending market participants didn’t disappoint. Lending activity started early on 7 March and by noon there were 3.3 million shares being borrowed, with the levels of demand making Snap shares among the most expensive specials.

By 1pm on 7 March, an additional 2.4 million shares had been borrowed, according to FIS Astec Analytics intraday data.

In total, 10.2 million shares were on loan by the end of the day on 7 March, with a weighted average cost well into the specials range.

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