Snap prices IPO between $14 and $16 a share

Often, the range is increased and, in particularly hot offerings, the stock will then price even higher.

Of the technology and communications IPOs since 2007, Snap's offering is poised to trail only Alibaba Group Holding Ltd's US$25 billion share sale and Facebook's US$16 billion raise.

The filing shows Snapchat's user growth slowed after the launch of Instagram Stories - a feature that mimics Snapchat's flagship feature, also called Stories, which allows users to send a string of videos and images to their friends that disappear after 24 hours. The IPO would value Snap at almost $18.5 billion, if the company prices at the high end of that estimated IPO range. Snap's latest private funding round valued the company at about $18 billion.

Since past year, the secretive company has had to share details on its losses and slowing user growth.

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This would give Snap a share price of between $14 and $16 each, but a final IPO price will be decided once it has finished consulting with its investors from today (16 February). Some potential investors have already "reacted with fury" over Snap's decision to sell shares with no voting power. The company makes the majority its money through advertising, and it booked revenue of $404.4 million previous year, up from just $58.6 million in 2015. The company posted an annual loss of $514 million in 2016.

According to the Financial Times Snap is due to host an investor roadshow next week with presentations in London, Boston, New York and San Francisco. By the fourth quarter, average daily active user growth fell below 50% for the first time since at least 2014, according to the deal prospectus. The underwriters have an option to sell another 30 million shares if demand warrants.

The remainder of the shares offered come from selling stockholders, including Benchmark and Lightspeed Venture Partners. After the offering, each will maintain a 44 per cent control over the votes.

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