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Snapchat's parent company files IPO documents; could be largest since Alibaba's in 2014

Snapchat's parent company Snap has filed its initial public offer documents with the US Securities and Exchange Commission, in what could be the largest IPO since Alibaba's in 2014 and Facebook's in 2012, a report by WIRED said. 

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Snapchat's parent company Snap has filed its initial public offer documents with the US Securities and Exchange Commission, in what could be the largest IPO since Alibaba's in 2014 and Facebook's in 2012, a report by WIRED said. 

Snap, which was rebranded as the parent company in September 2016, described itself as a camera company. 

"Snap Inc is a camera company," the preliminary prospectus filed with the SEC said. "We believe thta reinventing the camera represents our greatest opportunity to improve the way people live and communicate. Our products empower people to express themselves, live in the moment, learn about the world, and have fun together," it said. 

According to the WIRED article, the Snap IPO could likely look to raise $3 billion from its share sale. 

The IPO prospectus, referenced by DNA, said, "Our strategy is to invest in product innovation and take risks to improve our camera platform. We do this in an effort to drive user engagement, which we can then monetize through advertising. We use the revenue we generate to fund future product innovation to grow our business."

The company listed its financials. The prospectus said that Snap incurred a net loss of $514.6 million for the year-ended December 2016 compared to a net loss of $372.9 million for the year-ended December 31, 2015. According to the WIRED article, the company hasn't posed a profit since its incorporation in 2011. 

It has 158 million daily active users and about 2.5 billion Snaps are created everyday. 

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