Snapchat slashes IPO valuation

Snapchat, the messaging app owners has slashed its proposed one of the largest US tech listings, as the company prepares for marketing campaign. Snap had earlier aimed for a valuation of £25bn, but a price of $14 to 416 a share is revealed in the updated regulatory filing, puts the market valuation to $16.2bn to $18.5bn.

Based on the 200m shares on offer, Snap would raise up to $3.21Bn and make them the largest US-listed tech initial public offering since Alibaba in 2014.

Snap’s listing documents said the IPO would be the first to issue shares with no votes, reserving the power over major decisions and appointments for its co-founders.

Snap is pushing to sell its video ads and sponsored filters and facing stiff competition form Facebook-owned Instagram. Snap lost $535 in 2016 as costs escalated.

Snapchat was founded in 2011 by Evan Spiegel (26), now CEO and Bobby Murphy(28) Chief Technology Officer.