Snap Inc. seeks to raise up to $22.2 billion in IPO

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.

The range of the valuation is on the low end of Snap's initial estimates, which were in the $20 billion to $25 billion range.

The much-anticipated deal would be the largest US tech IPO since Alibaba went public in 2014, and it would make Snap the largest USA tech company to go public since Facebook in 2012, according to Renaissance Capital.

The class A stock being sold doesn't contain any voting rights, making Snap the first U.S. IPO to issue non-voting shares.

The company will list on the New York Stock Exchange under the ticker symbol SNAP. Today, Twitter shares trade at less than $17. Snap's earliest investor, Lightspeed Venture Partners, could make as much as $74 million.

The Snap Inc. IPO is expected to be the largest tech offering in several years and could leave Snap flush enough with cash to quickly ramp up its platform through a combination of acquisitions and organic growth.




Snap, which made its fame with an app that sends ephemeral photo and video messages, describes itself as a "camera company".

Revenue surged to $404.48 million for year ended December 31. Holders of class C stock - restricted to the company's founders, CEO Evan Spiegel and chief technology officer Bobby Murphy - are entitled to 10 votes.

Revenues surged to $404.5 million last year from $58.7 million in 2015, but Snap posted a net loss of $514.6 million against $372.9 million a year earlier, and its user growth slowed in the second half of 2016.

The founders will maintain tight control over Snap's stock through a unique three-share class structure. It generates the majority of its revenue from advertising, seeking to challenge the dominance of existing internet giants.

Facebook's Instagram, which recently introduced disappearing video content, had 600 million users as of late a year ago. The other banks participating are Goldman Sachs, Barclays, Credit Suisse, JPMorgan, Allen & Company, and Deutsche Bank.

 
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