Snapchat files for confidential IPO in potential $25bn flotation
The parent company of popular picture messaging app Snapchat has filed for an initial public offering with the Securities and Exchange Commission in the United States, according to reports.
Snap made a confidential filing to the SEC on Tuesday and is set to be one of the largest tech IPOs in recent years, with estimated valuations ranging from $20bn-$25bn.
The company is permitted to file the flotation privately as its revenue currently lies below the $1bn benchmark which necessitates public disclosure.
Tech IPOs have been few and far between in recent times as more companies see the benefit of remaining in the private sphere, but Snap's move may trigger other high-profile start-ups to consider going public.
If Snap reaches its expected valuation, it would be the biggest US flotation since Chinese e-commerce behemoth Alibaba listed two years ago.
Snapchat has gained wide popularity among teenagers and millenials since its incorporation in 2012, with its unique platform in which users send pictures which vanish seconds after they are sent.
100 million people use the app every day, recently taking over Twitter in terms of daily users.
The company has been taking advantage of the age profile of its users to rake in revenue from advertisers who reach a wide audience for their products.
Snapchat rejected an offer to be acquired by Facebook for $3bn three years ago, and has since then attracted major investors to gear itself up for the highly-anticipated flotation.