Initial Public Offering (IPO) was filed by Snapchat Inc. Initial Public Offering (IPO) is a type of public offering that would offer its shares to individual investors in the securities exchange for the first time.
Snapchat.Inc, the developer of "Snapchat," changed its name to Snap Inc. last September upon announcing its hardware product Spectacles. There was a report that the filling would be done by Snap several days after the launch of its Spectacles.
There was a hunch that Snap was preparing for the Initial Public Offering for the past few weeks. A $4 billion worth of share was being raised by the said company last October that would be available to the public market, reported by billboard. The filing of Snap Inc. with the Securities and Exchange commission before the election seeks a valuation of $20 billion and $25 billion.
The hardware product, which is Spectacles, is a set of sunglasses that can record short video clips, about 10 seconds, and share it on Snapchat. There are more than 150 million active users of Snapchat which is the half of the Instagram users. $350 million of revenue is being expected to be raised by the said company this year. With this amount of revenue, the company is eligible for filng the Initial Public Offering under the JOBS act, which states that a company with less than $1 billion revenue can file an IPO and would not have any public scrutiny, Newsmax reported.
The filing of the Initial Public Offering is one of the most recent acts of the company's CEO, Evan Speigel, for the advancement of his five-year-old company, according to billboard. Snapchat was founded in the year 2011 as a startup company. The said app was known for sending text, photos, and videos that would disappear after a short period of time.
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