Snap values itself at up to United States dollars 22B ahead of IPO
- Author: Zachary Reyes Feb 16, 2017,
Feb 16, 2017, 17:09
The value placed on a possible Snap Inc IPO has varied wildly, but now the company has revealed it will be at least $19.5bn, which would still rival the largest USA tech IPO ever.
They were reported to have rejected a $3bn takeover attempt by Facebook in 2013.
The parent company of SnapChat said in a regulatory filing today that the IPO is likely to be priced between United States dollars 14 and USD 16 per share.
That would make the entire company worth between $19bn and $22bn. It could be the biggest technology IPO since Alibaba raised a record $25bn in 2014.
Video: Can Snapchat avoid the same IPO fate as Twitter?
Snap is looking to list 200 million shares on the New York Stock Exchange under the ticker "SNAP".
Snapchat is an app which began as a platform for users to share photos with each other which would quickly disappear, but has developed its business into an advertiser's dream, capturing the attention of teenagers and trendy millenials. Past year the company introduced its first hardware product, camera glasses called Spectacles that retail at $130.
According to those familiar with Snap's IPO, the company is meeting with major mutual and hedge funds to hash out its true evaluation, before moving on to NY where it is expected shares will be priced as soon as 1 March.
Snap generates the majority of its revenue from advertising and seeks to challenge the dominance of internet giants such as Facebook and its Instagram service. Net losses widened to $514.6 million from $372.9 million in that period.