Portfolio managers at Fidelity and T. Rowe Price will be celebrating their early-stage investment in Snapchat, as the messaging app's stock soared on its debut.
Snapchat yesterday announced it had prices its initial public offering at $17 a share, above its indicated range, due to investor demand.
But the shares soared as the began trading, up 47% at $25, giving the company a market capitalisation of $29 billion. The stock was the most heavily traded on the market, with more than 100 million shares changing hands.
That will provide big gains to managers at Fidelity, who invested in 2015 and 2016, and T. Rowe Price who invested last year, with Snapchat then reportedly valued at $16 billion.
T. Rowe Price's investment in the app has been spread across at least 10 mutual funds.
Citywire AA-rated David J. Eiswert has the biggest allocation, with 0.43% of his $252.5 million Global Focused Growth Equity fund held in the stock.
That's followed by Ken Allen's $4.2 billion Science and Technology fund, with a 0.35% weighting.
Fidelity funds which invested in Snapchat before its IPO include Steven Wymer's $35.9 billion Growth Company fund, with a 0.17% holding, Sonu Kalra's $18 billion Blue Chip Growth fund, with a 0.14% position, and Citywire + rated William Danoff's $108 billion Contrafund, 0.08% weighted to Snapchat.
