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Snapchat IPO: Firm valued at $24bn despite losses

According to BBC, Snap, owner of messaging app Snapchat, has priced its shares at $17 ahead of Thursday's listing on the US stock market. The flotation values the business at $24bn, although Snap has never made a profit.

It will turn the company's founders Evan Spiegel and Bobby Murphy into multi-billionaires.

Snapchat, which is especially popular with teenagers, allows users to send images and messages which then vanish.

The shares, which were more than ten times oversubscribed, will list on the New York Stock Exchange.
Investors at the flotation will not have voting rights.

The company's losses widened last year, and user growth is slowing down in the face of intense competition from larger rivals such as Facebook.

Despite the challenges in converting "cool" into cash, Snap's valuation is the richest for a US tech flotation since Facebook in 2012.

At the beginning of February Snap's formal announcement to regulators of its plans revealed that the company had revenue of $404m last year, but made a loss of $515m.

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