Snapchat plans to issue IPO in March. Consequently, the parent company of Snapchat, Snapchat Inc. already selected banks for its initial public offering.
Banks will work for Snapchat
It chose financial service provider Morgan Stanley and bank company Goldman Sachs. These two banks will lead the deal.
JP Morgan, Deutsche Bank, Allen & Co., Barclays, and Credit Suisse are to work for the IPO launch too. These will be the joint bookrunners.
We know well that Snapchat is the photo-sharing company established in September 2011. Surpassing 5 years the company decided to go public. In March it is launching its IPO at a valuation of US $25 billion. Valuation amount may be more as well.
The timing, March can be a crucial point of time because of the imminent election. As a matter of fact, election and capital market are interrelated. US election will influence the capital market undoubtedly.
In the capital market, there are sayings around that Snap has already created buzz. People say that Snapchat is one of the most hotly known tech IPOs coming after Alibaba’s $25 listing in 2014.
Snap is rising to raise money while new listings from Silicon Valley are playing sloppy. Foreseeing the potency Banks were watching over the company to win a deal.
Investors say that Snapchat has informed them it wills to earn $250-$350 million in advertising revenue this year, as The Wall Street Journal.
We learned from CNBC that CEO Evan Spiegel and co-founder Bobby Murphy each own stakes worth about $4 billion at a $25 billion valuation.