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Spot The Odd One Out: Snapchat/ Subprime Auto Edition

On the heels of Snapchat’s IPO (which I contend will likely mark a dubious top for the most recent incarnation of the kind of speculative excess that brought us the tulip bubble), I found the following chart to be pretty amusing.

See if you can spot the odd bird in this bunch:

snapipo

(Bloomberg)

So Snap’s out-of-the gate pop was the second largest of any offering that’s priced over the last five years.

In seventh place is Santander Consumer. For regular readers, that name should ring a bell.

SC is perhaps the most recognizable name in the subprime auto space. Here’s a flash back to the 2014 IPO:

Santander Consumer USA, the American auto-lending arm of the Spanish banking giant Grupo Santander, priced its initial public offering at $24 a share, a person briefed on the process said late Wednesday.

The company’s private equity investors, which include Kohlberg Kravis Roberts, Centerbridge Partners and Warburg Pincus, plan to sell about 75 million shares, which would raise $1.8 billion. Earlier on Wednesday, the company had raised its expectations for the offering from earlier estimates of 65 million shares at a price of $22 to $24 each.

That turned out really, really well…

santandersp

On the bright side for Snapchat investors, you now know that out of the 10 IPOs with the largest opening pops in the last half decade, your company does not in fact have the sketchiest business model.

That is, if I’m an investor, I suppose I’d rather regain partial ownership of my sexts and dirty pictures than I would buy into a company that gives borrowers with no FICO 84-month loans for used cars.

 

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1 comment on “Spot The Odd One Out: Snapchat/ Subprime Auto Edition

  1. “On the bright side for Snapchat investors, you now know that out of the 10 IPOs with the largest opening pops in the last half decade, your company does not in fact have the sketchiest business model.”

    LOL

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