Snap Inc, the owner of the popular messaging app Snapchat, set a valuation of between US$16.2bil (RM72.15bil) and US$18.52bil (RM82.48bil) in its initial public offering, significantly below expectations.
Snap, which filed for its IPO in early February, was widely expected to be valued at between US$20bil (RM89.07bil) and US$25bil (RM111.34bil), giving the company the richest valuation in a US technology IPO since Facebook Inc.
The company said in a filing on Feb 16 that it expects to raise as much as US$3.2bil (RM14.25bil) in the IPO.
Snap said it expected the 200 million Class A share offering to be priced within a range of US$14-US$16 (RM62.35-RM71.26) per share.
Selling shareholders will sell 55 million shares and the remaining will be sold by the company.
Snap said it expects to use proceeds of about US$2.1bil (RM9.35bil) for general corporate purposes and to acquire businesses, among other things.
Snap, which launched itself in 2012 with an app that sends disappearing messages, rebranded itself last year as a camera company and started selling US$130 (RM578.96) video camera glasses.
The company generates the majority of its revenue from advertising, seeking to challenge the dominance of existing Internet giants. — Reuters