Snap sets price range for offering at maximum valuation of $22.2 billion

Snapchat IPO

Marketwatch reported Thursday, February 16, that Snap has set a valuation for itself at around $14 to $16 a share, or between $19.5 billion to $22.2 billion, ahead of its initial public offering (IPO). If the shares are sold, the company will generate around $2.1 billion and $2.3 billion, according to the regulatory filing. The filing also shows how the company has evolved over the past few years. Snap's latest private funding round valued the company at about $18 billion. A month earlier, that range was closer to $25 billion to $35 billion, people familiar with the matter said, with one suggesting it could be as much as $40 billion.

Though Snap's IPO has generated great interest after a dearth of new listings a year ago, the company is playing it conservatively.

Snap, which brings in the bulk of its revenue from advertisements in filters and promoted stories on Snapchat, could use the funds from an IPO for acquisitions of additional virtual-reality companies. Last year, Snap finished with total losses topping $500 million, higher than the $373 million lost in 2015.

Net losses widened to US$514.6 million from US$372.9 million in that period.

According to the Financial Times Snap is due to host an investor roadshow next week with presentations in London, Boston, New York and San Francisco.

The Snapchat app had 158 million average daily active users as of the fourth quarter of 2016. The underwriters have an option to sell another 30 million shares if demand warrants. Other selling owners including Chairman Michael Lynton and venture capital firms Benchmark, Lightspeed Venture Partners, General Catalyst and SV Angel. The two co-founders now plan to sell 16 million Class A shares-which don't have voting rights-when the company goes public, with the expectation that will sell more over time. After the offering, each will maintain a 44 per cent control over the votes.

Related News:



Most liked

China death toll from H7N9 bird flu soars to 79 in January
It is believed that the H7N9 virus is not transmitted between humans and that people get infected through affected poultry. But at least two possible cases of human-to-human transmission have been reported since September.

Melania Trump is "miserable" as First Lady
Addressing a pack of reporters, The Donald couldn't help but mention his eldest daughter Ivanka. And it has further fueled rumors that she and Donald Trump are heading for a breakup.

Going undercover, Hall of Famer Greg Maddux pranks Cubs' Kris Bryant
Bryant laughed when Maddux took the mound, but was impressed by the throws he was facing. "It'll sound really good", Maddux said. The 355-game victor recently donned a wig, mustache and goatee to fool reigning MVP Kris Bryant.

Trump To Issue New Executive Order To 'Protect Our Country'
In this role, they are expected to act on behalf of the law, and not in the favor of one person (i.e. the President). It is only fair that we maintain the high standards of safety in this country. "A lot of "bad" dudes out there".

Ben Affleck Reportedly Wants to Quit Playing Batman Altogether
Siri offers a number of lines in response, including "How can I help you, Lego Batman " and "Welcome home, sir". Poor Warner Brothers, they can't seem to catch a break when it comes to the caped crusader.

Searching for the mysterious Planet 9
Participants will share credit for their discoveries in any scientific publications that results from the project. A recent image of Neptune taken by WISE shows a fade object behind that might be a distant planet around the sun.

People protesting in Dallas despite continued construction of the Dakota Access Pipeline
The pipeline developer reached out to the tribe more than two years ago but has been continually rebuffed, Mr Mahmoud said. The tribes' legal options are narrowing, according to Dave Archambault II, chairman of the Standing Rock Sioux.

Donald Trump Brags About Electoral College Votes (Again) When Asked About Anti-Semitism
I think a lot of good things are happening. "See, it just shows you about the press, but that's the way the press is". The reporter then chimed in to try to finish his question , and Trump told him to be quiet and called him a liar.

LG G6 will have new UX that utilizes Full Vision display
Now, as the LG G6 approaches with a lack of bezels, the addition of waterproofing, and more, I can't wait to check out this phone. LG's new Android overlay is called UX 6.0, it will take advantage of the confirmed 5.7-inch display with an 18:9 aspect ratio.

NASA history: First pegasus satellite launches - Feb.16, 1965
The first test of Orion aboard a Space Launch System rocket is now planned without human passengers. The mission will last three weeks and will involve the Orion craft orbiting the Moon for six days.

Whoopi Goldberg Slams Treatment of Tiffany Trump at NYFW - and Tiffany Responds
Goldberg defended Tiffany Trump , 23, on Wednesday's edition of the talk show. "Tiffany, I'm coming to sit with you, because nobody's talking politics.

Telstra 1H profit falls 14.4% to $1.38b
Telstra has failed to meet analyst's expectations in its latest earnings report, with profits slipping 14.4% to $1.79 billion. Meanwhile, Telstra saw a 39 per cent increase in traffic over its mobile network during the six-month period.

Delta Debuts Free Main Cabin Meals in 12 Markets
Sear sold 4,671 shares of the company's stock in a transaction dated Wednesday, December 7th. The stock now has its Annual Dividend of $0.81 and an annual Dividend Yield of 1.62 Percent.

Kushner family releases statement on Marlins sale
Kushner's daughter-in-law is first daughter Ivanka Trump, while his son, Jared, is a senior adviser to the president. The New York Times attributed the Wednesday night statement to Charles Kushner's son-in-law, which would be Meyer.

'Hot Felon' Jeremy Meeks makes New York Fashion Week debut
He posted a sexy shirtless Instagram photo with Carine Roitfeld , the former editor-in-chief of Vogue Paris on February 12. His real name is Jeremy Meeks, and in 2014, many of you lost your minds (and your drawls) when his mugshot went viral.