Surprise!

By Reuters
February 24, 2017

Next week’s planned $3.2 billion 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 the following day.

Sources said underwriters told investors that the deal is oversubscribed at the marketing range of $14 to $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 during the IPO’s roadshow, though many have reservations about the company’s future.

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Investors have questioned the company’s slowing user growth, which was just 3% 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 fb and Google googl .

Related: Here’s How You Can Buy Snapchat Spectacles Online

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.

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