Date
11 December 2016
Snapchat's parent company is reported to be preparing for a listing that could happen as soon as March. Photo: Bloomberg
Snapchat's parent company is reported to be preparing for a listing that could happen as soon as March. Photo: Bloomberg

Snapchat parent said to have filed for big IPO

Snap Inc., which runs the Snapchat image messaging and multimedia mobile application, has filed confidentially for an initial public offering, Bloomberg reports, citing people familiar with the matter.

In papers filed with the US Securities and Exchange Commission, the Los Angeles-based company has sought an offering that will value the firm in the US$20-25 billion range, according to the report.

The listing could happen as early as March, a source was quoted as saying.

The filing is said to have been made before Donald Trump’s unexpected win in the US presidential election, which has created some uncertainty in global financial markets.

Snapchat is yet to make a final decision on the size of the IPO, but previous reports have put the deal at up to US$4 billion.

Snapchat, which has over 150 million daily active users, aims to generate more than US$350 million in advertising revenue this year, up from US$59 million in 2015, sources told Bloomberg.

As the firm has revenue of less than US$1 billion, it was able to file IPO documents confidentially.

Morgan Stanley and Goldman Sachs Group have been hired to arrange the IPO, according to the report.

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RC

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