September 17, 2022
Snapchat IPO

Snapchat IPO Filing Happening this Week

The Snapchat IPO filing is expected to happen this week as the company will publish its registration documentation previously filed with U.S. regulators…

A Snapchat IPO or Initial Public Offering, will likely become available this week as its parent company, Snap Inc., already filed with the U.S. Securities and Exchange Commission under the U.S. Jumpstart Our Business Startups Act. That law allows companies with less than $1 billion in revenue to secretly file for an IPO. This gives such enterprises an ability to test investor sentiment.

Snapchat IPO Filing Occurring this Week

Snapchat, a popular image messaging and multimedia mobile app, boasts more than 60 million daily active users in the United States and Canada. Worldwide, that number rises to 150 million daily active users, with approximately 50 million in Europe.

“Snapchat is expected to offer new investors ‘no-vote’ shares as part of its IPO, the sources said. Such a structure will deny investors voting power over the company’s corporate decisions, leaving more control in the hands of its board and co-founders, Evan Spiegel and Bobby Murphy,” Reuters reports.

It’s expected the company will go public in March, valuing between $20 billion and $25 billion, based on its latest funding reports. Such valuation would make Snapchat the biggest tech IPO since rival Facebook.

Snapchat measurement data is under active improvement, along with competitors Twitter and Facebook. The app launched in 2012, allowing its users to send photos which vanish in seconds. Of all its active users, about 60 percent are ages 13 to 24, making it very attractive to companies advertising to the millennial demographic.

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