Snapchat´s parent company Snap Inc. revealed in a filing made on Thursday that the company is looking for an initial public valuation of up to $22 billion. This represents a remarkable growth in the social media's financial power and will also turn its co-founders Evan Spiegel and Bobby Murphy into some of the richest figures in Silicon Valley.
Snapchat Eyes A Worth Between $19-$22 Billion
Apparently, Snapchat is looking to price its IPO on March 1 and is also preparing to sell shares between $14 and $16, which is something that would put the company in an important position that could increase its power. This move can also gain a lot of confidence from Wall Street stock analysts and investors, and it would make the whole company worth between $19 billion and $22 billion. In fact, it is also known that the parent company Snap Inc. wants to list 200 million shares under the ticker SNAP on the New York Stock Exchange.
Snapchat´s IPO Would Be The Largest Since Alibaba´s
If Snapchat manages to fulfill its intentions, the company would raise an estimated of $2.3 billion from the shares' sale, which is expected to be invested for expansion. Consequently, this move would give the platform more possibilities to take more actions to increase its popularity, and financial situation.
The Snapchat´s management team that will pitch the company to the investors at its road show will include Chief Strategy Officer Imran Khan, CEO Evan Spiegel and CFO Andrew Vollero, who are expected to play backseat roles. While Khan would probably present mainly on the business model, Spiegel is expected to talk about anything related to the product itself. Although it remains unknown which could be the detailed outcome of this particular event, Snapchat´s anticipated IPO would definitely be the largest in the tech world, since Alibaba went public three years ago, valued at $171 billion.