Snapchat files for $25bn IPO

Snapchat's parent company has reportedly filed for a $25bn (£20bn) initial public offering.

Snap Inc, which rebranded from Snapchat in September, has confidentially filed paperwork for a stock market listing with the US Securities and Exchange Commission, according to Reuters.

The IPO could happen during the first quarter of 2017 and could value the messaging company at between $20bn and $25bn. 

According to estimates from eMarketer, the company is on track to make more than $1bn in revenue by the end of this year including $367m in revenue from advertising.

An IPO has been mooted since 2014 after the company hired chief strategy officer Imran Khan, a former investment banker who worked on Alibaba’s $167bn float that year.

Snapchat has not commented on the reports.

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