It has been rumored for a couple of years now that Snapchat is going to file for an initial public offering. The company, now known as Snap Inc., remains a privately held entity at this point in time but there has been endless speculation about when it’s going to go public. According to a new report, the Snapchat IPO public filing is expected to take place next week.
When a company wants to go public, it has to open up its books to give prospective investors an idea of just how strong its business is and what risks it might face. A privately held company doesn’t have to do that, at least not for the public, which is why not a lot is known about Snapchat’s financials at this point in time.
Once it publicly files for an IPO, Snapchat is then going to conduct roadshows where it’s going to pitch its case to prospective investors which don’t only include big investment firms and hedge funds but also individual retail investors.
There’s likely going to be strong interest from the public as well in Snapchat’s IPO given that tech IPOs generally receive a lot of attention. Nevermind the fact that this IPO is going to set the benchmark for tech IPOs in 2017.
It’s not known officially at this point in time just how many shares the company is looking to float and what sort of valuation it will be looking at once it goes public. We will find that soon enough if and when the public filing is made.