Snap Inc. has confidentially filed paperwork for an IPO
According to reports citing unidentified sources familiar with confidential proceedings at Snap Inc., the company has filed paperwork for an initial public offering (IPO).
The filing for the IPO has been made, in confidentiality, by Snap with the US Securities and Exchange Commission (SEC) in recent weeks.
Snap is the company behind the popular ephemeral messaging app Snapchat which gives users the ability to send disappearing messages from their mobile handsets. The company was eligible for confidential filing of its IPO paperwork under the 2012 Jumpstart Our Business Startups Act, which offers such a provision for companies whose annual revenue is less than $1 billion.
With the IPO process having apparently been started by Snap, it is speculated that the four-year-old company will likely announce its debut at the stock market in March 2017. The move will make Snap Inc. the first company from among a small batch of highly valued and closely watched venture-backed firms - like Uber Technologies - to test the public markets.
In revealing that Snap is getting set for an IPO, one of the sources said that the IPO could value the company between $20 billion and $25 billion. Earlier, in an October report, the Wall Street Journal had said that the valuation of Snap as a result of an IPO would probably be $25 billion or more.