Snapchat Picks Morgan Stanley and Goldman Sachs to Lead IPO

According to Bloomberg Snapchat has chosen bankers for its initial public offering, which could happen as soon as March, claim people familiar with the matter.

Morgan Stanley and Goldman Sachs Group will lead the offering and were notified of their role early this week, said the people, who asked not to be named because the information isn’t public. JPMorgan Chase, Deutsche Bank, Allen & Co., Barclays and Credit Suisse Group will also be involved as joint book runners, the people said.

Snapchat, which recently changed its corporate name to  Snap, makes an application for sharing selfies and videos, watching news videos and chatting with friends. It has more than 150 million daily active users and aims to generate more than $350 million in advertising revenue this year, up from $59 million in 2015, people familiar with its plans have said. Because the company’s revenue is less than $1 billion, it qualifies to file IPO documents confidentially with the U.S. Securities and Exchange Commission.

Snap, with a private market value of $18 billion after its last funding round, will be the largest social media IPO since Twitter in November 2013. Snap plans to go public even as other large startups, such as Uber Technologies and Airbnb, take more time, raising private capital or borrowing money instead.

Morgan Stanley’s lead role comes after the bank arranged a credit facility for Snap in September. Mary Ritti, a spokeswoman for Snapchat, declined to comment, as did representatives for Goldman Sachs and Deutsche Bank. Representatives for Morgan Stanley, JPMorgan, Barclays, Allen & Co. and Credit Suisse didn’t immediately respond to a request for comment.