Snap to go Public Valued at $22B
Snap Inc., the ‘Camera’ company is looking to raise $3.2 billion through their upcoming IPO, with the two founders selling $256 million worth of stock each.
What has been hotly debated and discussed in the media, Snap Inc. is getting even closer to taking their company public, a first for the camera company. With the stock price estimated to launch at $14 – 16, that would value the company at a whopping $22 billion. This places the company at a valuation based on 19.7 times its forward 12 month advertising sales, 0.3 times higher than what Facebook IPO’d at.
With the extremely secretive company being forced to disclose its figures, as per the IPO requirements, their falling numbers and inability to compete with Instagram has become even more discouraging. Considering Facebook today trades at 10 times its forward 12 month sales, half from when they went public, most investors will be cautious before investing in another tech company that chooses to battle with the social media giant.
Currently the team at Snap Inc. is looking to go on an investors pitch roadshow where they will be looking to drum up some excitement and interest in their shares.
Snap Inc., will go to market most probably on March 1st, 2017.
Content Source: Mashable, Bloomberg