Snap rebounds as big-name funds disclose stakes in filings

Temasek among firms with shares: Bloomberg data

Temasek Holdings was among institutional investors detailing stakes in Snap, the parent of messaging app Snapchat, in filings with the US Securities and Exchange Commission on Monday.

The filings provided the first definitive snapshot on who bought shares in Snap when it went public in early March, in the biggest initial public offering for a United States tech company since Facebook's 2012 debut.

Some positions were started before Snap went public. Snap shares jumped 8.4 per cent to US$20.74 on Monday on the disclosures.

According to Bloomberg data, Temasek was among those firms having some of the largest stakes in Snap. It held 300,000 shares, which would account for 0.04 per cent of Snap's 682.1 million shares outstanding as of April 30, according to Bloomberg data.

Fidelity Management & Research disclosed a 33.2 million-share stake. The position makes it Snap's fifth-largest holder as of latest filings, according to Bloomberg data.

Coatue Management disclosed a 21 million-share stake, making it the sixth-largest holder as of latest filings. Other holders included the biggest US mutual and hedge funds, like Third Point, Soros and Appaloosa.

BlackRock, the world's largest asset manager with US$5.4 trillion (S$7.5 trillion) in assets, bought 9.4 million Snap shares during the first quarter, its filing showed.

Snap shares had quickly risen after the initial public offering, but plunged last week after revenue missed estimates in its first quarterly report as a public company. Snap had reported a US$2.2 billion first-quarter loss.

User growth and revenue fell short of some Wall Street estimates as it competed with similar apps. On Wednesday last week, the shares fell 23 per cent in after-hours trading, wiping some US$6 billion from Snap's market value.

Analysts gave kudos to arch-rival Facebook for stifling Snap's growth, while chief executive Evan Spiegel scoffed at the competitive threat on the conference call.

Snap keeps clawing back losses from last week's 21 per cent swoon, a welcome piece of news to any of the institutional owners now reporting stakes in the messaging service - as long as they did not bail in the down draft.

BLOOMBERG

A version of this article appeared in the print edition of The Straits Times on May 17, 2017, with the headline 'Snap rebounds as big-name funds disclose stakes in filings'. Print Edition | Subscribe