View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
October 13, 2016

Snapchat hires banks ahead of $25bn IPO

IPO could be the largest for a US tech company since Twitter in 2013.

By James Nunns

Snapchat is gearing up for an initial public offering by hiring Morgan Stanley and Goldman Sachs.

The popular messaging service, which was created by Snap, has hired the banks to lead the offering for what is expected to lead to a valuation of the company at between $20bn and $25bn.

Morgan Stanley and Goldman Sachs will lead the offering with other banks such as Credit Suisse, Barclays, Jp Morgan, Deutsche Bank, and Allen & Co working as bookrunners, according to the FT.

If the IPO goes ahead then it would be the largest US tech IPO since Twitter launched at a valuation of $18bn in 2013.

Although it may be the largest US tech IPO for a few years, the largest IPO in the US in recent years was that of Alibaba in 2014, which valued the Chinese firm at $168bn.

IPO would be the largest for a US tech firm since Twitter in 2013.

IPO would be the largest for a US tech firm since Twitter in 2013.

Although a date has not yet been set it is expected that the IPO could go ahead in March 2017.

Snapchat, which recently renamed itself as Snap, has been looking to broaden its portfolio away from the application and has looked at a move into hardware.

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

The company recently launched a pair of sunglasses called Spectacles that feature an integrated video camera.

Interest in the company has been high this year with it raising $1.8bn in a series F private fundraising round. This round brought its total funds to around $2.6bn.

Following a bumper year for IPOs in 2015 the market has been a lot quieter this year due to market uncertainty.

However, recent months have seen Nutanix, and Coupa file for successful IPOs and software company Misys also announce its plans for an IPO. Coupa Software saw its share price rise more than 90% as it debuted on the Nasdaq, while Nutanix’s share price rose over 130% on its first day of trading.

The success of these IPOs suggest that the market concerns may not be holding back investors from seeking out tech shares.

Topics in this article : ,
Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.