Snap Inc., the mother of the Snapchat app, has filed updated IPO on Thursday. The company has decided to sell off 230 million shares with price range $14 to $16 per share. This will allow it to raise as much as $3.6 billion. Further, it will provide a capital range $ 19.5 billion to $22.2 billion.
In the coming week, the company may follow up a final public filing. This will give investors a broader outlook at the company’s financials. Back in March last year, snap Inc. was targeting for revenue of $300 million to $ 350 million for 2016.
Snap Inc., a Los Angeles-based company, is just five years old. After Facebook and Twitter, this will be the largest IPO for a tech company in several years. Snap Inc. formed by a college drop out in 2012 and came to an end soon competes with Twitter Inc., Instagram, and Facebook.
As you might already aware of snapchat’s sexting app. This app allows users sharing disappearing pics and videos with the public. Reportedly, snap Inc. has around 100 million active users. This app is mostly famous in teens aged between 12 years to 25 years.
The company has reported, snapchat users are creating more the 2.5 billion messages and post every day. On average users visit this app at least 18 times per day. Further as per statics users are spending 25-30 min daily on snapchat app.
In order to take its business to the next level, the snap has decided to go publicly. The company will invest this money in shaping its infrastructure. Recently the company has announced to spend $1 billion deal with e-commerce giant Amazon. As per the company officials, this amount will go in improving its services in multiple areas. Before this company has already signed a deal of $2 billion with Google to use cloud services. Snap Inc. will do this investment in five following years. The company is trying hard to increase its user base and in providing best services.
Snapchat app has emerged as of the new and powerful player. This news may turn up alarming for communications giants including Facebook, Instagram, Twitter, Line, and Tencent. Such big steps will give a good competition to other players across the globe.
This most awaited IPO could set a tone for other tech players in 2017. This successful offering would enhance the other IPO plans on future tech offering