- Snap began its IPO roadshow in London on Monday.
- Some investors have expressed concerns over the unusual share structure that will not give IPO investors any voting rights.
- The Snapchat parent company is also not providing future revenue projections.
LONDON (Reuters) – Snap Inc, owner of popular messaging app Snapchat, kicked off its first investor roadshow on Monday, looking to persuade London money managers to back its initial public offering in the face of concerns about its growth prospects, valuation and corporate governance.
The U.S. company, which has yet to make a profit, aims to raise between $19.5 billion and $22.3 billion from listing on the New York Stock Exchange, after cutting its initial target of $20-$25 billion last week following investor feedback.
Investors attending Monday’s event said Snap’s 26-year-old Chief Executive Evan Spiegel gave a sleek presentation. However, they were disappointed there were no projections on the company’s future revenues or advertising share – an indication of how quickly Snap thinks it can make money from its huge user base.
“That’s the million dollar question and we won’t find out for some time,” said one potential backer on his way out from the hour-long event where Spiegel ditched his usual casual wear and wore a suit with no tie.
Some were disappointed that it was just a question-and-answer session with no demonstration of Snapchat’s spectacles, launched in the United States late last year, which come with a built-in camera.
One attendee, however, said it made sense not to push the hardware angle too much at this stage.
Few U.S. firms aside from Apple have made big profits on hardware, and camera and wearable gadget makers have much lower valuations than Snap is seeking.
Most of…