Snap Inc., which runs the virtual-messaging app Snapchat, is working on an initial public offering that could value the firm at US$25 billion or more, according to the Wall Street Journal.
The US tech firm is eyeing a deal that could happen as early as late March, the paper said, citing sources familiar with the matter.
If Snap, whose app lets users send videos and messages that disappear in seconds, moves forward as planned, it could result in the largest tech IPO in the US since China’s Alibaba Group went public in 2014.
A level of US$25 billion or more will mark a significant premium to Snap’s most recent valuation, which was pegged at US$17.8 billion in its last private funding round in May, the Journal noted.
Underpinning Snap’s valuation is the company’s dramatic revenue growth since it first started running advertisements in 2014.
The company told investors earlier this year that it expects revenue of between US$250-350 million in 2016 and as much as US$1 billion in 2017.
That compares with revenue of just US$60 million last year.
Despite the revenue growth, Snapchat is believed to be losing money.
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