Snap set a valuation for itself between $19.5 billion and $22.2 billion, according to people familiar with the matter, as the disappearing-message app company nears its landmark initial public offering.
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The valuation range, which equates to $14 to $16 a share, is near the low end of the $20 billion to $25 billion range the Snapchat parent company had earlier targeted. The company and its underwriters will set a final IPO price based on feedback from investors in a roadshow that is about to begin.
Even at the low end of the expected valuation range, it would be the largest U.S.-listed tech offering since Alibaba Group Holding’s IPO in 2014, according to Dealogic.
Last year was the slowest for U.S.-listed tech IPOs since 2009 in terms of the number of deals and dollar volume, according to Dealogic, and the Snap offering will be closely watched for signs of a revival.
But some investors have questioned whether Snap is worth the valuation it is seeking. They cite slowing growth in its daily average user base, which recently stood at 158 million; increasing competition from Facebook; and the limited control new shareholders would have.
Snap will market the offering to mutual funds and hedge funds in meetings Monday in London, according to the people. After that, the meetings, which are typically held in hotel ballrooms, will move to New York and other cities. The shares could be priced as soon as March 1 and begin trading the following day on the New York Stock Exchange under the ticker "SNAP."
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Snap is expected to disclose the preliminary valuation in an update to its IPO filing with the Securities and Exchange Commission as soon as Thursday.
Write to Maureen Farrell at maureen.farrell@wsj.com
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