Snap Inc., the company previously known as Snapchat, has chosen bankers Morgan Stanley and Goldman Sachs Group Inc. to push forward with its ambitious plan for an Initial Public Offering (IPO). Snapchat might go public by March 2017, depending on the outcome of the U.S. presidential elections and the state of the company.
According to Digital Trends, major companies such as Barclay Plc, JPMorgan Chase & Co, Credit Suisse Group AG and Deutsche Bank AG will also participate as joint book runners with the bankers to lead the offering. Apparently, the photo-sharing company could list at a valuation of $25 billion or even more, and will become the largest social media IPO since Twitter Inc. in November 2013.
From A Teen Phenomenon To Become IPO
Just like an incredible movie, this company started as a teen phenomenon growing later high that they actually ended up running a platform for established media publishers. In fact, Cosmopolitan and The Wall Street Journal are among the publications running their own Snap channels, according to Financial Times.
Snapchat, which is now called Snap Inc., has been characterized for its application for chatting with other users, watching news video and sharing selfies and videos. Having more than 150 million daily active users, they want to create more than $350 million in advertising revenue this year, increasing the $59 million they achieved last year, as reported by Bloomberg.
Snapchat Will Be The Biggest Company To Go Public
If all these numbers are correct, the popular visual messaging app will be the biggest company to go public in the U.S., having the advantage that they qualify to file IPO documents confidentially since their revenue is less than $1 billion.
In addition to this incredible fact, they will also become the biggest U.S. technology IPO that Morgan Stanley has served as left lead advisor. His previous case was Facebook Inc., which went public in 2012, and tried to buy Snapchat for $3 billion two years later.