Snap Inc, Snapchat’s parent company, is expected to publicly file its initial public offering (IPO) next week, says a report in Recode. The site quoted sources who said Snap Inc is planning to file the IPO late next week. The report adds the timing may still change given this is ‘typical’ in public offerings.
Snapchat filed for an IPO with the Securities and Exchange Commission on November 8 last year. The Venice, California-based company is expected go public in March and might be valued at $20 billion to $25 billion, making it the largest IPO since Chinese e-commerce giant Alibaba Group Holding Ltd’s valued at $170.9 billion.
For Snap, implications of this IPO could be huge as advertising sales is the only significant revenue source for the company right now. Snapchat, which has close to 150 million daily active users, has seen a quick growth since its launch in 2012. The messaging app is quite popular among youth and according to reports, 60 per cent Snapchat users are aged between 13-24 years.
Snap Inc. introduced its first hardware called the Spectacles, in September. Spectacles cost $130 and these limited edition toys have proved to be very popular. The glasses are equipped with a camera that connects wirelessly to a smartphone to take and send Snaps. The company’s investors include General Atlantic, Sequoia Capital, T. Rowe Price and Lone Pine.
Snapchat, in a bid to crack down on ‘questionable content’ that appears on its Discover tab, introduced new guidelines for publishers. These guidelines stop publishers from posting explicit or nude pictures on Discover as well as give out external links that can lead users to websites with fake news etc. The move comes ahead of Snap’s initial public offering.
With agency inputs