The IPO could see Snap Inc. valued at $25 billion.
The Wall Street Journal has reported, citing several sources who are familiar with the matter at hand, Snapchat’s parent is set to come out with an initial public offering (IPO) that could see the company valued at a minimum of $25 billion.
As per the WSJ report, Snap Inc’s IPO could be as early as in late March.
Incidentally, if Snap Inc.’s IPO is valued at $25 billion it would be significantly higher than Snapchat’s most recent valuation of $17.81 billion, based on a $1.81 billion funding round in May.
Significantly, the IPO would be the largest by a tech company since Alibaba went public in 2014.
Last month, tech website The Information has reported that Snapchat has been talking to investment bankers about an IPO which was then scheduled for launch in early 2017.
“We aren’t commenting on rumors or speculation about any financing plans,” said Snap Inc.’s emailed statement.
However’s, Snap Inc.’s IPO comes at a time when shares of Box Inc. and Square Inc., which went public in the last two years, are trading way below their private market valuation.
Snapchat’s valuation has risen in the last few years with the company adding advertising and sponsored contents to its messaging service.
As per sources familiar with the matter at hand, Snapchat has told investors that it expects to rake in $1 billion in advertising revenue in 2017.
As per financial documents leaked last year, Snapchat’s revenues from advertising was $3.1 million in 2014.
According to research firm eMarketer, Snapchat is expected to have a user base of 58.6 million in the United States by the end of 2016. This number is expected to jump by 13.6% to 66.6 million by 2017, according to eMarketer.
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