Snap Inc Is Reportedly Filing For An IPO

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Snap Inc, the company behind the already famous Snapchat app, has reportedly filed for an IPO.

Snap Inc, the company behind the already famous Snapchat app, has reportedly filed for an IPO as the company could come to be featured amongst other stock market players.

Snap Inc is the owner and developer of the currently fastest growing smartphone messenger application, Snapchat.

The app has reached a global number of well over 150 million users, with an estimated 60 percent of its users being young people, aged 13 to 24 years old.

As Snapchat continues to grow, market estimates point towards a $350 million value for the current financial year revenues. Last year saw revenues coming up to $59 million.

The self-entitled camera company, Snap Inc and Snapchat, recently launched a new product in the form of a pair of video camera sunglasses.

The device, which comes with a $129 price tag, will allow its users to click and quickly snap a picture, which can then be shared on their Snapchat profiles or with friends.

The company has seen quite a number of investors since its release with Sequoia Capital, General Atlantic, and Lone Pine being amongst the latest.

Previous company funding was ensured by the likes of Yahoo Inc. Fidelity Investment and Kleiner Perkins Caufield & Byers.

The most recent Snap Inc. investor with an as yet undisclosed sum is the Google Capital or the Google parent company, Alphabet, investment division.

More recently, reports have surfaced according to which Snap Inc has filed for a confidential IPO or Initial Public Offer sometime earlier in November.

The estimated IPO valuation sum was approximated to be in between $20 to $30 billion, which would place Snapchat at the forefront of technology IPOs.

As their valuation sum would place them in the first places amongst technology domain IPO’s, Snap Inc would be in league with the IPO likes of Alibaba and Facebook.

Alibaba, the Chinese e-commerce giant, launched its IPO back in 2014 at the New York Stock Exchange and was valued and opened at a $170 billion value.

As such, Alibaba holds the first place in terms of global IPO valuations, with Facebook holding the first position in the United States.

The Facebook IPO launch took place in 2012 at a value of $81.2 billion with a market capitalization value of over $100 billion.

Back in May, Snap Inc raised $1.81 billion through Snapchat, with a market valuation of $20 billion.

The company’s IPO efforts are being led by the Morgan Stanley and Goldman Sachs Group. At the same time, their joint IPO book runners include Barclays Plc, JP Morgan Chase & Co., Allen & Co., Credit Suisse Group AG, and Deutsche Bank AG.

The Snap Inc. IPO, which is estimated as being the biggest United States filing since Facebook, could also place them amongst the first digital companies to use the JOBS Act.

The confidential filing was done under the protection of the JOBS or United States Jumpstart Our Business Startups Act.

The JOBS Act permits the public filings without public debates and rigorous securities regulations of small companies with revenues of no more than $1 billion.

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