Technology - - Feb 03,2017
Snap Inc., the parent company of fast-growing social network Snapchat, filed paperwork to increase $3 billion in company’s long-awaited IPO (Initial Public Offering).
The Los Angeles-based company will only sell non-voting shares when it goes public. Snap Inc. claims total 158 million daily users and mentioned that over 2.5 billion snaps are created every day.
Technology Company Snap Inc. which had earlier filed confidential papers for an IPO was expected to be one of the largest tech company IPOs in recent years with a valuation expected to top $20 billion.
On Thursday, Snap’s publication of its IPO registration certificate sets the stage for its forthcoming marketing promotion to convince stockholders to look past its widening damages and the firm grip of its creators and attention on its quick development of active users.
The company stated in the IPO registration document published on Thursday that Snap Inc. would become the first United States corporation to go official with shares on offer not granting voting rights to stock markets investors. The founders of Snap Inc., Evan Spiegel and Robert Murphy, will retain control of the company.
In the IPO registration documents filed with the United States Securities and Exchange Commission (SEC), Snap mentioned it took in $404 million in profits in the year 2016, but lost $515 million.
Snapchat, especially known for its disappearing chats, has become massively popular with new generation smartphone users. But the corporation has recently been increasing its offerings to let publishers to deliver content over the platform.
Snapchat quoted that the company believes to derive most of its income from ads, where it will contest against competitors like Facebook, Twitter and Google.
According to the unnamed sources familiar with the situation, Snap Inc. could be valued at between $20 billion to $25 billion. That would give the corporation the richest valuation in the United States technology IPO since Facebook.