In documents on Thursday that were filed with the Securities and Exchange Commission, Snap Inc, the Snapchat parent company filed to become a public company.
The company will list shares with the New York Stock Exchange and its proposed symbol for trading will be “SNAP.” Its maximum proposed offer is $3 billion.
The filing did not release a valuation for Snapchat, which reportedly is valued at up to $25 billion. The valuation could not be made since the exact number of overall shares that are to be offered by Snapchat was not available.
That information will be clearer when the actual debut in the market nears.
Snap identified the company not as a platform of social media, as it is described often by the press, but as a camera business.
The company in its filing said it believes the reinventing of the camera was the greatest opportunity to improve how the people live as well as communicate.
Relative to the two numbers that were being looked for by everyone – active daily users and revenue – Snap announced that for its December 31, 2016 yearend, revenue ended at $404.5 million and its daily active users were to an average of 158 million.
Snap’s per share loss for its year ending December 31, was 53 cents with $451 million cost of revenue. In its outline of its business plan, the company said that primarily revenue is generated by advertising and it stressed its willingness to take risks to drive its user engagement.
As with many companies in Silicon Valley, Snap announced it will have a share structure that is dual class, and that its shares of Class A, which cannot vote, are the only offering in its IPO.
Shareholders of Class B have a one vote for one share allocation and Class C shareholders are 10 votes per each share.
Amongst other factors of risk listed by Snap is the age of its base of core users, which is between 18 and 34, and Snap acknowledges might be less loyal on the brand and more apt to follow the trends than other types of demographics.
In addition, the company outlined how engagement amongst users who are younger topped that of older users.
It stated that users who are 25 or older visited the site approximately 12 times per day spending 20 minutes on average every day during the quarter ending December 31, while those younger than 25 visited more than 20 times and spent more than 30 minutes each day.