Snap is reaching for the sky with its impending initial public offering.
In a filing today with the Securities and Exchange Commission, the parent company of social messaging service Snapchat set its price per share at $14 to $16. If Snap received an initial public offering price of $16 per share, Snap would be valued at $22.24 billion. At $15 per share, the mid-point of the expected range, valuation would come in at just shy of $20.9 billion.
Snap is hoping to raise $2.1 billion from the sale of its Class A common stock. Snap co-founders Evan Spiegel and Bobby Murphy are both planning to sell 16 million Class A shares. That would give each of them up to $256 million after the IPO. Spiegel and Murphy, together, will retain 88.8 percent of the vote.
In its filing, Snap said it intends to use the net proceeds received from the offering “for general corporate purposes, including working capital, operating expenses, and capital expenditures.” A portion of the net proceeds may also be used “to acquire complementary businesses, products, services, or technologies,” the company said.
Once Snap’s IPO is official, it will be the largest company to go public on a U.S. Exchange since 2014 when Chinese eCommerce firm Alibaba went public with a massive $168 billion valuation.
Snapchat, which last fall changed its company name to Snap Inc., is expected to list with the New York Stock Exchange with the goal of going public in March.
Jennifer Cowan is the Managing Editor for SiteProNews.