Snapchat reportedly hires Morgan Stanley and Goldman Sachs to lead IPO

Snapchat, which recently changed its corporate name to Snap Inc., makes an application for sharing selfies and recordings, watching news videos and chatting with companions. It has more than 150 million every day dynamic users and expects to create more than $350 million in advertising revenue this year, up from $59 million in 2015, individuals acquainted with its plans have said. Since the organization’s revenue is under $1 billion, it meets all requirements to file IPO archives secretly with the U.S. Securities and Exchange Commission. Investors are anxious that Snapchat’s advertising sales, which started last October, is the organization’s exclusive noteworthy income source.

Snap Inc., proprietor of Snapchat, has picked Morgan Stanley (MS) and Goldman Sachs (GS) as the lead underwriters for its initial public offering that spectators say could occur early in 2017.

The U.S. Initial public offering market has been unpleasant to technology companies for the majority of 2016. Year to date, technology IPOs have raised generally $2.3 billion, contrasted with $5.2 billion over similar period in 2015. But a recent string of such IPOs has imparted more certainty and confidence among investors.

The banks were notified not long ago that they had been granted one of most coveted and potentially lucrative IPO mandates in recent years, as the Venice, California-based organization competes for a $25 billion valuation in stock markets.

JPMorgan Chase, Deutsche Bank, Allen and Co, Barclays and Credit Suisse will be joint book runners, the source said, requesting that not be named in light of the fact that the information was not yet open.

Snapchat is prominent with high schoolers and youthful grown-ups, contending with Facebook, and in addition Twitter (TWTR). While Snapchat has surpassed Twitter in active users, Facebook hasn’t been particularly harmed by the upstart organization(Snapchat) that has practical experience in messages that vanish.

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