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- Snapchat is going public — Here’s what we know
Snapchat is going public — Here's what we know
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Loading...In documents filed with the SEC on Thursday, Snap Inc., parent company of Snapchat, filed to go public.
As previously reported, the company will list its shares on the New York Stock Exchange. Its proposed trading symbol is “SNAP.” The maximum proposed offer amount is $3 billion.
This filing does not give us a valuation for the company — which has been reported to be as high as $25 billion — as the exact number of shares being offered by the company is not available. This information will become clear closer to Snapchat’s actual market debut.
At the top of its filing, Snap identified itself not as a social media platform — as it is often described in the press — but as a camera company.
In terms of the two numbers everyone was looking for — revenue and daily active users — Snap said that for the year ended December 31, 2016, revenue totaled $404.5 million while daily active users averaged 158 million.
As is the case with many Silicon Valley companies, Snap also said that it will have a dual-class share structure, and said that its Class A shares — which are not entitled to vote on matters submitted to shareholders — are the only ones being offered in its IPO. Class B shareholders have one vote per share and Class C shareholders have 10 votes per share.
“We cannot predict whether this structure and the concentrated control it affords [CEO Evan] Spiegel and [co-founder and CTO Robert] Murphy will result in a lower trading price or greater fluctuations in the trading price of our Class A common stock as compared to the trading price if the Class A common stock had voting rights. Nor can we predict whether this structure will result in adverse publicity or other adverse consequences.”
From the company’s filing, here’s a snapshot of its financial situation:
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