IG Launches Snapchat CFD Ahead of IPO as Grey Market Trading

Snap Inc. has announced plans for an initial public offering on the NYSE with a valuation of over $25 billion.
Photo: Bloomberg

Another huge IPO of a household name is approaching and online CFD brokers are again using the opportunity to get traders excited. Snap Inc. has announced an IPO plan on the NYSE with a valuation of over $25 billion and IG Group (LON:IGG) is already set to offer trading on the stock.

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IG sent out a message to its clients reminding them that it offers grey markets in advance of the listings of companies on stock markets in the UK, Europe and the US.

The brokerage says its traders have enjoyed the opportunity to speculate on the valuation of a company before it becomes publicly traded. Previous grey markets such as Royal Mail and Facebook were particularly popular among its clients, given their major presence in daily life, IG reveals.

Chris Beauchamp, IG Chief Market Analyst, comments: “Historically IG’s grey markets have been solid indicators of where companies official launch prices will end up. Snap is one of the biggest and most anticipated US tech IPOs for years, with the potential to rival the excitement witnessed when Facebook and Twitter went public. The echoes of Twitter’s IPO are clear to see, given Snap’s admission that turning a profit could be difficult. Whether the IPO hype survives once the initial celebrations are over remains to be seen.”

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