Snapchat maker files for $3 bln IPO

California-based Snap Inc. – the parent company of popular social media messaging app Snapchat – filed to go public last Thursday, aiming to raise $3 billion through its initial public offering (IPO).

Snap will only sell non-voting shares in the IPO, making it the first US firm to go public with shares on offer not granting voting rights to stock market investors, according to its IPO registration document.

Snapchat founders Evan Spiegel and Robert Murphy will retain control of the company.

The firm will list on the New York Stock Exchange with the ticker symbol “SNAP.”

Snapchat has 158 million daily users, the majority of whom are 18-34 years old, Snap said.

However, the tech firm warned that it could lose popularity eventually, which would hurt profits.

“We anticipate that the growth rate of our user base will decline over time. If we fail to retain current users or add new users, or if our users engage less with Snapchat, our business would be seriously harmed.”

The company also noted that profitability may continue be an issue. Snap widened its net loss to $514.6 million in 2016, from a net loss of $372.9 million in 2015.

"We have incurred operating losses in the past, expect to incur operating losses in the future, and may never achieve or maintain profitability," Snap said in the filing.