Snapchat Parent Targets Valuation of up to $22.2B, IPO Price of $14-$16 per Share

Noah Webb
Snap CEO Evan Spiegel

The midpoint price of $15 per share would raise approximately $2.1 billion for Snap.

The parent company of ephemeral messaging app Snapchat in a regulatory filing on Thursday said it would price its IPO in the $14 to $16 per share price range, making for a total valuation of $19.5 billion to $22.2 billion, near the low end of the $20 billion to $25 billion range it had targeted. 

The midpoint price of $15 per share would raise approximately $2.1 billion.

After months of speculation about when the parent company of Snapchat, Snap Inc., would go public, the company earlier this month revealed its plans in a filing with the Securities and Exchange Commission.  

The company, led by CEO Evan Spiegel, is expected to soon start a so-called road show for investors. After that, a final IPO price will be solidified, likely in early March.

The stock will trade on the New York Stock Exchange under ticker symbol "SNAP."

The Venice, Calif., company has made some of its previously private financial information public. For example, it said in a previous filing that its revenue amounted to $404 million in 2016, up from $58.7 million in 2015. The company also reported a loss of $515 million for 2016. 

Snapchat had 158 million daily active users at the end of the fourth quarter, up from 153 million at the end of the third quarter. Year-over-year, it grew DAUs by 46 percent. In comparison, Instagram reported 300 million DAUs in June, when it had 500 million monthly active users. It now has 600 million MAUs.

One person who stands to gain from the Snap IPO, outside of the company's co-founders, is chairman Michael Lynton. The outgoing Sony Entertainment CEO has been a longtime Snap investor and began serving on the board in 2013 before becoming chairman in September. According to a previous filing, Lynton did not receive compensation for his role on the board in 2016.

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