Snap Inc share price sinks to record low as lockup period expires releasing 400m shares

Lynsey Barber
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The company behind messaging app Snapchat has not lived up to its IPO (Source: Getty)

Shares in Snap climbed back from a fresh record low today as its lockup period came to an end.

Early investors in the newly public tech company and employees can now cash out their holdings totaling 400m shares.

Read more: Snap's been blocked from stock indexes because of its lack of voting rights

The owner of messaging app Snapchat's stock dipped more than four per cent as markets in New York opened, falling to an intraday low of $13.10, sinking lower than previous lows of $13.14.

Shares pared some losses to close down 1.01 per cent at $13.67.

The stock has slipped by more than 40 per cent since its initial public offering (IPO) at $17 per share in March.

Trading volume was 1.5 times the company's 10-day moving average with more than 26m shares having changed hands just two hours into the regular trading session.

From today and extending into August, early investors, employees and other insiders can sell shares for the first time since its massive $3.4bn float on the New York Stock Exchange.

Last week, Snap was blocked from featuring on indices by FTSE Russell because it did not offer shareholders any voting rights.

The group made the decision after investors raised concerns and the Investment Association urged MSCI Global and S&P Dow Jones to exclude firms with non-voting shares.

Read more: Snapcrash: App’s share price drops as lead underwriter admits its error

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