Snap Inc confidentially files for tech IPO at $25 bn: Report
New York, Nov 16 (IANS) Set to become one of the highest-profile stock debuts along with Chinese e-commerce company Alibaba and social media giant Facebook, photo and video sharing app Snap Inc has filed paperwork for an initial public offering (IPO) that may value the messaging platform at as much as $25 billion, media reported.
The company, formerly known as Snapchat, submitted the filing with the Securities and Exchange Commission in recent weeks, the Wall Street Journal quoted people familiar with the matter as saying.
The report added that this could provide a boost for the technology IPO market, which has experienced weakness in the recent years.
“According to data provider Dealogic, just 103 companies have listed their shares in the US in 2016, raising $21.8 billion. That is down from 165 deals raising $34.6 billion at the same juncture last year and marks the lowest year-to-date level for deals since 2009 and proceeds since 2010,” the WSJ report noted.
Bankers and investors were, however, optimistic that a successful debut for Snapchat would convince other tech companies to tap the IPO market.
Snap expects to have less than $1 billion in revenue this year, making it eligible to file for the IPO.
Chinese e-commerce company Alibaba Group Holding Ltd. made its debut at a $168 billion valuation in 2014.
The company renamed itself to Snap Inc in September and unveiled camera-equipped sunglasses, called Spectacles, that can record video in short bursts.