Snap Inc has set the valuation range for its upcoming IPO, erring on the side of caution and valuing itself at the lower end of its expected range, between $19.5bn and $22.2bn (£15.6bn to £17.8bn).
According to The Wall Street Journal, initial expectations were that the company would list itself at between $20 and $25bn. The valuation range it has selected represents $14 to $16 per share.
Snap filed for its IPO registration statement in early February, but has not confirmed a date for the listing yet, which is expected to generate the biggest valuation in a US technology IPO since Facebook.
Among the information gleamed from the company’s filing with the US Securities and Exchange Commission was the fact that the firm had prioritised iOS over Android development after showing higher engagement rates among iPhone users.
However, according to The Information, the firm is now looking to improve the Android version of its Snapchat app in order to drive user growth outside the US, where Google’s operating system has a substantially larger user base than iOS.
Even within the US, most users among Snapchat’s core demographic favour the Android operating system, but the app actually has more users on iOS. Industry experts have pointed to a number of performance and stability issue the app suffers from on Android, as well as bugs, so an update will no doubt be well received by existing users, as well as driving growth for the firm.