NEW YORK: Next week’s planned $3.2 billion initial public offering (IPO) of Snap Inc., maker of the popular Snapchat app, is oversubscribed, market sources told IFR on Friday.
The much-awaited deal is scheduled to price on Wednesday, with the company set to begin trading on the New York Stock Exchange (NYSE) the following day.
Sources said underwriters told investors that the deal is oversubscribed at the marketing range of $14-$16 per share, but they have yet to offer more specific pricing guidance.
Potential buyers have been plentiful at lunches in New York and London this week though many have reservations about the company’s future.
Investors have questioned the company’s slowing user growth, which was just 3 percent in the latest quarter versus the prior quarter.
There are also doubts about Snap’s ability to sell ads to the 158 million daily active users of Snapchat, and how sticky these users will be amid competing products from the likes of Facebook and Google.
Some have also expressed reservation about the shares themselves, which do not come with voting rights.
Snap is planning to sell 200 million shares in all, 55 million of them by company insiders.
‘Snapchat IPO oversubscribed’
‘Snapchat IPO oversubscribed’
Saudi Finance Ministry acquires 86% stake in Binladin Group through debt-to-equity conversion
RIYADH: The general assembly of Binladin International Holding Group has approved a capital increase through the conversion of existing debt into equity, a move that results in the Saudi Ministry of Finance acquiring an 86 percent ownership stake in the company, according to a report by Al-Arabiya.
The decision marks a significant step in restructuring the group’s financial position and reflects shareholder confidence in the company’s long-term strategy and operational recovery.
In a statement cited by the Al-Arabiya report, Binladin Group’s board of directors said the approval underscores trust in the company’s future direction and reinforces its development and growth objectives.
Under the approved arrangement, outstanding financial obligations will be settled through the issuance of new shares, allowing the company to substantially reduce its debt burden and strengthen its balance sheet.
As a result, the Ministry of Finance will become the group’s majority shareholder, aligning the government directly with the company’s growth trajectory while supporting its financial stability.
The transaction follows earlier measures taken by the Ministry of Finance to stabilize the group’s financial structure.
Previously, Saudi Arabia’s National Debt Management Center announced the successful completion of a syndicated loan facility on behalf of the ministry, arranged with a consortium of local and international banks. The facility totaled approximately SR23.3 billion ($6.2 billion) and was part of a broader framework to address the company’s liabilities.
The Ministry of Finance had earlier outlined a series of coordinated steps with Binladin Group to settle outstanding cash obligations to banks and restructure the company’s financial commitments. These measures were designed to restore operational stability and enable the group to continue executing its portfolio of large-scale construction projects.
The move is seen as a continuation of the government’s broader support for the construction and infrastructure sector, a key pillar of Saudi Arabia’s economic transformation agenda under Vision 2030.
The restructuring is expected to help ensure the timely completion of strategic projects, safeguard employment, and enhance the sector’s attractiveness to investors.
Commenting on the development, Mohammed Al-Tayyar, a political economy researcher, said the capital increase through a debt-to-equity swap significantly strengthens Binladin Group’s financial standing. He noted that the transaction is likely to bolster investor confidence, improve governance and transparency, and open up new opportunities for sustainable growth as the company moves forward under a more stable financial framework.
