Top investment banks behind the Snap Inc public listing are being slammed for the lack of voting rights that investors in the stock will receive.
Snap Inc priced its initial public offering above its target range at $17 per share on Wednesday, valuing the company at $24 billion when staff stock and deal bonuses are included.
The holding company, which owns social media phenomenon Snapchat, will debut on the New York Stock Exchange Thursday but investors have bought shares with no voting power.
Stephen Isaacs, chairman of the investment committee at Alvine Capital, says the major investment banks behind Snap's public debut are pushing through an unusual move that takes liberties with investors' rights.
"Morgan Stanley and Goldman should hang their heads in shame here. I mean not about the valuation but non-voting shares?
"Isn't that the ultimate example of bubble trouble? So I say we are in a bubble, there is no value and investors should take a lot of risk off the table," he said Thursday.