Snapchat gear ups for IPO with hire of Morgan Stanley and Goldman Sachs

Mobile messaging app Snapchat has taken a further step towards an initial public offering, as it has hired Morgan Stanley and Goldman Sachs as its bankers for the process, according to reports.

The investment banks will lead the team of analysts who will oversee the popular app's flotation, with additional assistance being provided by JPMorgan, Deutsche Bank, Allen & Co., Barclays and Credit Suisse.

Snap Inc, the recently established name for the company which operates Snapchat, is expected to fetch between $20bn and $25bn when it goes public, currently has a private market value of $18bn.

The company started in 2012 as a free app which allowed users to send picture messages to each other, with the image being deleted after it had been seen. It currently has 100m active users and is providing stiff competition in the social media market for the likes of Facebook and Twitter.

Snapchat hopes to introduce hardware in addition to its software offerings in the near future, including virtual reality technology.

The IPO market has been quiet for tech startups in the last number of years, and Snap Inc.'s flotation would be the largest since Facebook went public in 2012.