Snapchat has filed for an initial public offering, sources familiar with the situation said on Tuesday, which puts the messaging app a step closer to the biggest U.S. stock market debut since 2014.
The Venice, California-based company could go public as soon as March and be valued at $20 billion to $25 billion, making it the largest IPO since Chinese e-commerce giant Alibaba Group Holding Ltd’s went public two years ago valued at $170.9 billion. It would be the largest U.S. technology IPO since Facebook Inc’s debut in 2012 with a value of $81.2 billion.
The widely popular messaging app has been rumored to be preparing to go public for months.
In October, the Wall Street Journal reported Snapchat could start selling shares as early as late March with a valuation of $25 billion or more.
Snapchat filed papers with the U.S. Securities and Exchange Commission before last week’s U.S. Presidential election, one of the people said, asking not to be identified as the details are private, Reuters said.
Snap would be just the latest company to take advantage of the ability to tell the Securities and Exchange Commission of its intent to go public without a public S-1 filing. These so-called confidential filings are reserved to companies with an annual revenue of less than $1 billion, which are also known as emerging-growth companies.