It has long been rumored that Snapchat – renamed recently to Snap Inc., – is going to file for a public offering to raise billions of dollars. A new report reveals that the company has confidentially filed for its initial public offering. It apparently wants to raise as much as $4 billion at a valuation of more than $30 billion. Confidential filings are nothing new, Twitter went public the same way back in 2013.
According to reports, it has been revealed in the confidential filings that the company’s annual revenue is below $1 billion, that has to be the case as under the jobs act if a company’s annual revenue is less than $1 billion it can file for an IPO confidentially. The IPO is expected to formally begin by March next year.
It’s also said that no final decision has been made on the size or the timing of the IPO so it’s not known with absolute certainty right now how much money Snap Inc., is looking to raise from its initial public offering.
The company has reportedly chosen Morgan Stanley and Goldman Sachs to lead the IPO. Joint book runners will include some of the top financial institutions such as JP Morgan Chase, Deutsche Bank, Credit Suisse, and Barclays.