Snapchat "secretly" files for $25bn IPO

16/11/2016

Messaging app Snapchat has filed for an initial public offering that could value the company at around $25 billion, according to a news report.

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Snap, the company behind the popular social media platform Snapchat is reported to have “confidentially” filed for a float on the US stock exchange.

Reuters is reporting that the company, founded in the US by Evan Spiegel just five years ago is understood to have filed papers with US regulators.

Earlier reports suggest the company has been gearing up to float with an initial public offering valuing the company at US$25bn.

Based on investments so far, the California-based firm would be worth between $20bn and $25bn (£16bn-£20bn).

That would make it the largest US flotation since Chinese e-commerce giant Alibaba listed two years ago.

Snapchat's parent company Snap declined to comment on the reports.

The move to list sees it follow in the footsteps of Facebook, which floated for $104bn and Twitter, which gained more than 70% on its first day of listing, giving it a value of just shy of $25bn.

Snapchat launched back in as a mobile app that allowed users to send photos that vanish within seconds. It now has 100 million daily users, which is more than Twitter.

And with 60% of its users aged between 13 and 24, it is seen as an appealing way for advertisers to reach young people.

Snap's founder, 26-year-old Evan Spiegel, turned down an offer from Facebook founder Mark Zuckerberg to buy Snapchat for $3bn just three years ago.

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