Lucas Jackson | Reuters
An investor departs the Mandarin Oriental hotel holding a pamphlet of information on investing in the upcoming IPO of Snap Inc in New York, February 21, 2017.
When Snap, the maker of Snapchat, officially goes public next month on the New York Stock Exchange, the company hopes to raise more than $3.6 billion by selling shares of its stock to the public.
Most of that money will go into Snap's coffers to help pay for things like office space, new hires and potential acquisitions — and to help cover the billions the company plans to spend on cloud servicesover the next five years with Google and Amazon.
If Snap can sell its stock at the high end of its $14 to $16 price range, the company should pocket roughly $2.5 billion on the IPO.
But that means a large sum of money — just over $1 billion — isn't going to Snap.
So where is it going? To Snap's co-founders, board members and early investors, a number of whom have decided to sell their personal shares in Snap as part of the IPO.
Here's a look at who is selling what, and how much each stake will be worth — assuming Snap is able to price its stock at $16, as it hopes.
Snap's selling shareholders
|Name||Shares being sold||Estimated value|
|Evan Spiegel, co-founder and CEO||16,000,000||$256 million|
|Bobby Murphy, co-founder and CTO||16,000,000||$256 million|
|Mitch Lasky/Benchmark, Investor||20,000,000*||$320 million|
|Lightspeed Venture Partners, Investor||8,662,952*||$139 million|
|General Catalyst, Investor||1,071,264*||$17 million|
|Michael Lynton, Chairman||54,907||$879,000|
* Share totals assume underwriters will exercise an option that allows them to buy up to 30,000,000 additional shares of Snap stock pre-IPO. Snap S-1
It's not uncommon for executives and investors to sell some of their shares as part of an IPO. Facebook insiders actually offered to sell more shares than the company did during its IPO back in 2012.
All of the shareholders listed above will still own substantial stakes in the company after the IPO. Co-founders Spiegel and Murphy will each be worth multiple billions and control more than 88 percent of the company's voting power.
—By Kurt Wagner, Re/code.net.
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