Snapchat Parent Company Planning IPO as Early as March

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Snap Inc, the company that owns picture- and video-sharing app Snapchat, is planning an initial public offering that could value the companyat a minimum of $25bn, according to a report in the Wall Street Journal.

An IPO valued at $US25 billion ($A33 billion) would be significantly higher than Snapchat's most recent valuation of $US17.81 billion ($A23.47 billion), based on a $US1.81 billion ($A2.39 billion) financing round in May.

In 2016, only 19 tech companies went public and they were collectively valued at only $3.3 billion, according to the Wall Street Journal.

The Information previously reported that the company was looking to go public as soon as later this year or early 2017.

It could happen as soon as March, and it would be the biggest IPO in the US since Alibaba's $168 billion bow in 2014.

Snap Inc., whose disappearing messages are used by 150 million people daily, reportedly is planning a $25 billion initial public offering, making it the biggest stock market debut on a USA exchange since 2014. It generated just $60 million in revenue a year ago.

A company representative declined to comment on the report, on Thursday.

The company is said not to have filed an S1 yet, the first part of the going public process, but could do so confidentially given that it will have less than $1 billion in revenue this year. What this tells us: Unlike its parent company, which has made several unsuccessful Snapchat clones, Instagram actually knows how to make a convincing knockoff.

Snapchat is offering a variety of "channels" that allow its media partners such as CNN, ESPN, Vice and BuzzFeed connect with its audience.

An IPO at $25bn would prove a big win for Spiegel who publicly rejected a $3bn bid for the service from Facebook in 2013. It's unclear whether Snap Inc.is operating in the black. Snap recently changed its name from Snapchat as it moves from the main app for which it is known, which makes virtual messages disappear and is especially popular with teenagers.

For example, a start-up Snap acquired two years ago devised the prototype for Spectacles, sunglasses with an integrated video camera that the company plans to begin selling later this year.

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