Snapchat's parent company quietly files for 'largest tech IPO in years'
Snapchat's parent company Snap Inc has quietly filed for an initial public offering (IPO) with the floatation expected as early as 1Q next year, with industry observers forecasting that its eventual valuation could be as high as $30bn, according to reports.
Snap shares could be publicly traded as early as March next year, according to reports
Several reports citing sources familiar with the proceedings claim Snap filed an S-1 with the Securities and Exchange Commission – the normal the procedure to set the wheels in motion for an IPO – under rules that permits companies to do so without making it public, as long as its annual revenues are under $1bn.
Newswire service Reuters, which first made the reports, has claimed that Snap declined to publicly comment when approached, but cites sources close to the developments, adding that the initial filing was made before the US presidential election on November 8.
Industry observers commenting on the reports have dubbed the move as potentially the biggest tech IPO in years, comparing it to Facebook’s flotation in 2012.
Snap Inc is headquartered in Venice, California, and was founded in 2011. Since then it has taken on $2.63bn in eight rounds of funding, counting Alibaba, Kleiner Perkins Caused & Byers as well as Institutional Venture Partners among its high-profile investors, with its latest Series F funding round of $1.8bn taking place in May 2016.