According to the company’s last amended initial registration form
filed to the US Securities and Exchange Commission before the offering, the Palo Alto, Calif.-based law firm also owned 239,800 Class A shares and 239,800 preferred shares of the tech company. The non-voting Class A shares, which were offered during the IPO, were converted to Class B shares — which have voting rights per share and are reserved for executives and early investors — at the close of the IPO.
The firm owns the shares via another company comprised of its partners and associates. At a close of US$27.09 per share on Friday, the law firm’s holdings was valued at nearly US$13m.
Snapchat valued its IPO on the New York Stock Exchange for a US$24bn capitalisation, but the shares were 12 times oversubscribed and closed Thursday up 44% for a capitalisation of about US$34bn. The company raised US$3.4bn from the IPO and is trading under the SNAP ticker. It is the second-largest US-based tech company IPO, behind only Facebook, which debuted with a market capitalisation of over US$104bn.
Snap has been a long-time client of Cooley, which incorporated the tech company in 2012. Since then, it has advised Snap on a range of matters spanning corporate and litigation – including all of the company’s financings and M&A, intellectual property, real estate, commercial litigation, compensation and benefits, and employment and labour.
Menlo Park, Calif.-based Goodwin Procter also advised on the deal, acting for the underwriters of the offering.
Snap’s legal bill is dwarfed by its accounting spend for the transaction, which totalled US$6.88m. It also spent US$1.1m on “printing and engraving” and US$1.75m on “miscellaneous.”
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Cooley has earned US$1.8m in legal fees as the legal counsel of Snap Inc., the parent company of Snapchat, in its initial public offering last week.