In a move that could see the photo-sharing app valued at a whopping $20bn – $25bn, Snap is said to have filed for IPO with the US Securities and Exchange Commission before Trump’s unexpected election win.
And the huge valuation of Snapchat could make it the biggest IPO since Alibaba Group Holding Ltd in 2014, which was valued at $170.9bn.
Snap was able to file for this move confidentially under the US Jumpstart Our Business Startups Act, which states a company with under $1bn in revenue can file for IPO secretly.
By doing this, a company is able to get a better idea of how keen investors are, while also keeping its financial information under wraps.
In terms of success, Snapchat’s main draw is its ability to offer advertisers a platform to target millennials, as 60% of its 100m users are between the ages of 13 and 24.
And although this is positive news for the company, there are some concerns that investors may be reluctant if Snapchat’s only revenue source is advertising.
Sources have said Snapchat could go public as soon as March 2017.