Snapchat heads for $25 billion mega-float in the US

Mobile messaging start-up Snapchat is edging towards the largest US flotation in two years after reportedly applying to list on Wall Street.

Snap Inc, the parent company behind the messaging app for the selfie generation, could float by March, with a valuation as high as $25 billion (£20 billion), according to reports.

The California-based company, which is run by co-founder Evan Spiegel, filed secretly before the US election under an Act designed to shield sensitive financial information of start-ups with revenue of less than $1 billion from the public eye.

At $25 billion, Snap’s listing would be the biggest float since Chinese e-commerce giant Alibaba went public in 2014 with a $171 billion price tag.

It would be the biggest social media float since Twitter listed in 2013 with a $25 billion valuation. The micro-blogging site’s woes have raised questions about whether Snapchat can convert huge user numbers into profits.

Snap’s float is seen as the litmus test for tech unicorns — start-ups with valuations of more than $1 billion, though often with little or no income. Others include taxi-hailing app Uber.