Photo-sharing app Snapchat’s parent is working on an initial public offering that could value the company at $25 billion or more.
Snap Inc, which operates the app that lets users send videos and messages that disappear in seconds, is looking to sell shares as early as late March. An IPO valued at $25 billion would be significantly higher than Snapchat’s most recent valuation of $17.81 billion, based on a $1.81 billion financing round in May.
It would also represent the largest IPO by a technology company since Chinese e-commerce giant Alibaba Group Holding Ltd went public in 2014. Snapchat had been talking to investment bankers about an IPO towards the end of this year or early in 2017, technology website The Information reported last month.
Reports on Snap Inc’s IPO come at a time when shares of technology companies such as Square Inc and Box Inc that went public over the last two years are trading below their private market valuation. Snapchat’s valuation has grown in the last few years as the company added advertising and sponsored contents to its messaging service.
The company has told investors to expect $1 billion in advertising revenue in 2017, according to sources familiar with the matter.