Company - - Nov 18,2016
Snapchat’s parent company Snap Inc. filed an Initial Public Offer amounting close to $25 billion
Snapchat’s Snap Inc. has confidently submitted the paperwork for an Initial Public Offering, as reported by Reuters. Snap Inc. aims at being a publicly traded company; since the IPO, which is estimated to hold the value of $20-$25 billion, can come as early as March 2017. Industry experts believe this to be ‘one of the highest-profile stock debut in recent years’.
The company filed a confidential IPO before the US elections, in compliance with the Jumpstart Our Business Startups or the JOBS Act, which allows companies with an annual revenue less than $1 billion to do so.
Snapchat’s owners have brilliantly renamed the company to Snap Inc. after launching their new hardware, the snapchat ‘Spectacles’, sunglasses with a built-in wireless camera; Founder Evan Spiegel recently said in a blog post, "We need a name that goes beyond just one product."
With a huge reach of over 150 million daily users in the U.S. itself, Snapchat is becoming one of the most favored tech companies and the savviest of social media networks. Though Snapchat’s revenue is solely based on the ads featured in between stories and featured snapchats, investors and experts are optimistic about the success of Snap Inc.’s debut.
The success, would drag the rest of bellwether tech companies to try their hand at the same, which could boost the IPO market that has had a convincingly bad year. Only 103 companies listed their shares in the U.S. in 2016 to raise a sum of $21.8 billion, according to data provider Dealogic. The numbers are down from 165 companies raising $34.6 billion at the same juncture last year, which marks 2016 as the lowest year-to-date for deals since 2009.