Snapchat to seek $4 billion in its planned IPO

The IPO could value Snapchat at about $25 billion to $35 billion. No final decision has been made and the size of the IPO may change. The valuation could reach as much as $40 billion,

Valuations can vary in the lead-up to an IPO as companies may try to temper expectations among investors, while others on the deal are more likely to promote higher numbers.

Snapchat, which recently changed its corporate name to Snap Inc., is preparing filings for a listing and aims to sell shares in the first quarter of next year, people familiar with the plans said earlier this month. Because the company’s revenue is less than $1 billion, it plans to file IPO documents confidentially with the U.S. Securities and Exchange Commission, one of the people said.