The U.S. start-up's IPO is being closely watched as it could set the tone for other technology offerings in 2017. Last year saw a dearth of U.S. listings, but experts are predicting that the market could thaw this year.
Snap makes its money through advertising and will need to convince potential investors that its app is not just a fad. In 2016, the company generated revenue of $404.5 million, a sixfold increase on the $58.7 million made in 2015, according to a regulatory filing with the U.S. Securities and Exchange Commission. However, net losses widened to $514.6 million last year, from $372.9 million the year before.
At the end of 2016, Snap had 158 million daily active users, up 48 percent from the same time the year before. But in the fourth quarter of 2016, year-on-year growth of users fell, which Snap put down to increased competition as well as product performance issues stemming from updates to its app.
Snap has seen rising competition from the likes of Facebook, which has released its own Snapchat-like product called "Stories", as well as Instagram Stories, another service akin to the disappearing messaging app.
Shares of Snap could be priced as soon as March 1 and begin trading the following day on the New York Stock Exchange under the ticker "SNAP", the WSJ reported.
Read the full Wall Street Journal report here.