Tech firm Snap’s decision to go public with only no-vote shares on offer is a bold move that’s unlikely to become a trend, despite the fears of some investors.
The decision taken by the parent company of instant messaging app Snapchat has incensed investors, so much so that a number of US pension funds are in the process of writing Snap’s executives a strongly-worded letter.
Snap, which is hoping for a $3 billion capital raise in the deal, will be the first US company to go public with only no-vote shares.
“This is a direct contrast to the trend in the US investing community towards better shareholder rights and more control,” said Josh Korff, partner at Kirkland & Ellis in New York. “It’s obviously a step backwards...