Snap has raised about $2.7 billion in total funding to date from investors such as General Catalyst, IVP, Coatue Management and Benchmark.
Snap Inc. will be worth as much as $22 billion if all goes well with its upcoming initial public offering, in which the company will for the first time make its stock available to the public for purchase. The IPO would value Snap at almost $18.5 billion, if the company prices at the high end of that estimated IPO range.
After confidentially registering with the US Securities and Exchange Commission late past year for an IPO, Snap Inc filed its IPO registration statement in early February and is expected to record the biggest valuation in a US technology IPO since Facebook Inc.
According to those familiar with Snap's IPO, the company is meeting with major mutual and hedge funds to hash out its true evaluation, before moving on to NY where it is expected shares will be priced as soon as 1 March.
The company notes in a filing with the Securities and Exchange Commission that it could increase its valuation range if it sees strong demand for the stock. Scheduled gatherings include an event in New York City next Tuesday. However, net loss widened to $514.64 million from $372.89 million a year earlier, hurt by higher costs.
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Since past year, the secretive company has had to share details on its losses and slowing user growth. By the fourth quarter, average daily active user growth fell below 50% for the first time since at least 2014, according to the deal prospectus. Holders of class B stock are entitled to one vote, and it is convertible into one share of class A stock. It plans to list on the NYSE under the symbol SNAP.
Snap's co-founders Evan Spiegel and Bobby Murphy will hold 14.5 percent of Class A shares each, after the offering, down from 21.8 percent. The class C stock represents 88.5% of the voting power of the outstanding capital stock after the IPO.
The company adds that while it might purchase some "complementary businesses, products, services, or technologies", it is not anticipating any material acquisitions.
The filing shows Snapchat's user growth slowed after the launch of Instagram Stories - a feature that mimics Snapchat's flagship feature, also called Stories, which allows users to send a string of videos and images to their friends that disappear after 24 hours.