Snapchat files for IPO seeking to raise $3-4 billion on a market value of $25bn, Saxo Bank’s head of equity strategy Peter Garnry explains.

2016 revenue was $400 million, up around 500% from 2015 while adjusted EBITDA was minus $460M, he adds.

Snapchat is expected to reach $1bn in 2017 and investor demand is expected to be high for Snapchat shares. This is a real threat to the Facebook, Google and Twitter advertising markets.

Snapchat has a very high market share among young people below 30. Because of this Facebook wants to acquire Snapchat, but offers have so far been rejected.

The IPO is expected to be filed within next couple of quarters, Garnry concludes.