1 year ago 0

Snap Inc, the owner of messaging/photo sharing app Snapchat, has took one step closer to listing its shares on the stock market after settling on which banks will assist with the flotation.

References close to the deal established Morgan Stanley and Goldman Sachs would underwrite the initial public offering (IPO).

Several other banks will assist in the complex operation.

The IPO is expected to value the company at $25 billion! The listing has hopes to happen by March of 2017. It would be the largest social media float since Twitter went public in November 2013.

Snapchat has seen its popularity go through with 150 million people using it daily to send and receive messages, photos and videos. The app is designed so messages delete once they are read or expire.

With 10 billion videos being watched every day, the company has seen a 350% increase in use over the last year, according to Snap Inc. In June, the first lady of the US, Michelle Obama joined the app.

A round of funding in May established the company worth at $18 billion, the apparent ease with which money was raised showed investor interest was high.

Data from eMarketer suggested the app-based company could bring in advertising revenue of almost $1 billion by the end of 2017, a big rise from the $367m it is predicted to make from adverts this year.

Other large startups, such as Uber and Airbnb are also hotly tipped to be considering floating. When taxi-booking app Uber agreed to sell its unprofitable business in China to rival Didi Chuxing in August, it was seen as the removal of an obstacle for a future IPO.

Allen & Co, Barclays, Credit Suisse, Deutsche Bank and JPMorgan Chase will also take part in the Snap Inc flotation, a source with knowledge of the IPO said.

Snapchat declined to comment on the “speculation” that sources the company’s financing plans.