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Snapchat Is Preparing To IPO At A $33 Billion Valuation

Snapchat Is Preparing To IPO At A $33 Billion Valuation

Snap Inc. aims to hit the market as early as late March, the Wall Street Journal reported citing anonymous sources.

The Information previously reported that the company was looking to go public as soon as later this year or early 2017.

If that estimate turns out to be accurate, it would make Snap the biggest company to go public on the US exchange since 2014, when Chinese e-commerce giant Alibaba Group Holding Ltd. debuted at $168 billion.

Snapchat, a mobile app that lets users post pictures and videos that disappear after a set period of time, recently renamed itself Snap Inc. High-value technology stock offerings were more common several years ago, but have fallen off in the past 12 to 18 months as investor interest cooled, in part because several of the companies that went public were struggling, including , GoPro and Grubhub, which have all seen their value drop since going public.

The third quarter was a quiet one for IPOs in the USA, with just 35 deals raising $6.4 billion, down slightly from the same quarter a year ago, says EY.

"We aren't commenting on rumours or speculation about any financing plans", Snapchat said in a statement emailed to Reuters on Thursday.

More news: Jose Mourinho slams football 'Einsteins' in no-nonsense retort to Manchester United criticism

During its last funding round in May, Snap's valuation was pegged at $17.8bn. Since then, Facebook, flush with cash, has made a habit of cranking out knockoffs of Snapchat's most popular features.

Having launched its ad platform in mid-2015, Snapchat still only captures 2.3% of social-networking dollars, eMarketer estimates.

The news comes on the heels of Snap Inc's first hardware product, Spectacles. Another key IPO driver is Snapchat Chief Strategy Officer Imran Khan, a former Credit Suisse banker who helped take Alibaba public in 2014.

Snap estimates it has more than 100million users globally of the service for sending videos, images and text messages which vanish after being viewed.

Snapchat generated revenue of $US59 million last year, and the company projects that number to rise more than fourfold this year, a person familiar with the matter said in May.

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