Snapchat parent company Snap to file for IPO next week - Report

Snapchat's parent company Snap will reportedly publish its initial public offering (IPO) filing some time late next week.

The company confidentially filed its IPO documents with the US Securities and Exchange Commission under the Jumpstart Our Business Startups Act late last year, hoping to go public as early as March this year.

The IPO offering could value the firm between $20bn (£16bn) and $25bn; an amount that is reasonably higher than Twitter's $18bn valuation at IPO in 2013, and even higher than its fundraising round last year.

According to people familiar with the plan told the Financial Times Morgan Stanley and Goldman Sachs were leading the offering.

Last September the company changed its name to Snap.inc. It decided to "drop the chat and go with the Snap Inc!".

The name change was because the company was developing other products and it wanted to beyond one product. Along with this, the company launched Spectacles, which are sunglasses with an integrated video camera. Spectacles connect directly to Snapchat via Bluetooth or Wi-Fi.

Snapchat has been preparing to go public by recruiting Michael Lynton to become chairman and creating a new three-class stock structure to ensure co-founder Evan Spiegel and Bobby Murphy take control of the app.

It has been perusing marketers to buy photo and video ads in Snapchat. According to research group eMarketer, the revenue at Snapchat is expected to reach almost $1bn this year, more than 150% year-on-year. But it is facing stiff competition from rivals such Facebook and Instagram.