Snap sets IPO valuation at an ambitious $22.2bn ahead of roadshow

A smartphone showing Snapchat's discover feature

Next month, Snapchat parent company Snap will begin selling shares on the public market in one of the most highly anticipated I.P.O.s for a tech company since Twitter went public in 2013.

Snapchat is looking to charge between $14 and $16 for a single share, of which the company will make 200 million available in the IPO.

After confidentially registering with the US Securities and Exchange Commission late a year ago for an IPO, Snap Inc filed its IPO registration statement in early February and is expected to record the biggest valuation in a US technology IPO since Facebook Inc. On Thursday, however, Snap updated its IPO filing with a proposed stock price for when it goes public in March (under stock symbol "SNAP"), and it's not quite as high as had been widely expected.

Snap Inc pop-up store in NY, 2016. The company makes the majority its money through advertising, and it booked revenue of $404.4 million past year, up from just $58.6 million in 2015.

Morgan Stanley & Co LLC, Goldman Sachs & Co, JP Morgan Securities LLC, Deutsche Bank Securities Inc, Barclays Capital Inc and Credit Suisse Securities (USA) LLC are among the underwriters to the IPO.

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Delta Air Lines, Inc. has a 12 month low of $32.60 and a 12 month high of $52.76. ( NYSE:DAL ) opened at 51.17 on Thursday. The share price is now 4.44 percent versus its SMA20, 3 percent versus its SMA50, and 20.46 percent versus its SMA200.

Since previous year, the secretive company has had to share details on its losses and slowing user growth.

The Snapchat app had 158 million average daily active users as of the fourth quarter of 2016.

Snap said it plans to use the IPO funding for "general corporate purposes, including working capital, operating expenses, and capital expenditures", according to the filing. After the IPO, the class C stock will represent 88.5% of the voting power, meaning outside stockholders won't have any control over matters that come before the board of directors.

Outlining the financial details of its initial public offering (IPO), Snap Inc. said it expects net proceeds of some $2 billion. It's also set to be the first United States listing from that industry this year, according to data compiled by Bloomberg.

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