Snap Inc set to reveal financials within a week as IPO gets closer
Snap Inc, the owner of mobile messaging app Snapchat, is reportedly set to disclose its financials within a week as its eagerly anticipated flotation on the stock exchange gets closer.
Snap Inc set to reveal financials as IPO gets closer. / Snap Inc
The numbers were filed to US regulators last Autumn along with its plans for running as a public company.
Sources told Recode that the financials would be made public over the next few days, though they did admit that these plans could change. A spokeswoman for Snap Inc declined to comment when approached by the publication.
However, it makes sense that Snap would do this sooner rather than later given it is expected to float on the stock exchange as soon as March with a value between $20bn and $25bn. Should it hit this projection then it would become the largest US technology IPO since Facebook in 2012.
Snap has already secretly filed with the US Securities and Exchange Commission under the US Jumpstart Our Business Startups Act, which allows companies with less than a billion in revenue to confidentially file for an IPO so that they can gauge investor appetite.
A company must make its initial IPO prospectus filing, officially known as an S-1, public at least 15 days before beginning its so-called "road show," in which it markets the IPO to investors, reports Reuters. This document reveals a company’s business background, finances and corporate governance for investors alongside other details such as the amount they expect to raise that is added the closer the IPO gets.
The technology business is reportedly tipped to offer new investors “no-vote” shares as part of its IPO, meaning that they will not be given voting power over the company’s corporate decisions, consequently concentrating most of the control with the board and its co-founders Evan Spiegel and Bobby Murphy.