Snap, which provides a mobile app, Snapchat, for ephemeral messaging and photo sharing, announced terms for its IPO on Thursday.
The Venice, CA-based company plans to raise $3.0 billion by offering 200 million shares (28% insider) at a price range of $14 to $16. That would make it the largest US tech IPO since China-based Alibaba in 2014, or the largest US tech company to go public since Facebook in 2012. At the midpoint of the proposed range, Snap would command a fully diluted market value of $19.5 billion.
Snap was founded in 2011 and booked $404 million in sales for the 12 months ended December 31, 2016. It plans to list on the NYSE under the symbol SNAP. Morgan Stanley, Goldman Sachs, J.P. Morgan, Deutsche Bank, Barclays, Credit Suisse and Allen & Company are the joint bookrunners on the deal. It is expected to price during the week of February 27, 2017.
The article Snap sets terms for $3 billion IPO; largest IPO since Alibaba originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.
Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital, the Renaissance IPO ETF (symbol: IPO) or the Global IPO Fund (symbol: IPOSX) , may have investments in securities of companies mentioned.