Photo-sharing app Snapchat is moving closer to an initial public offering of shares.
It has reportedly chosen Morgan Stanley and Goldman Sachs as the banks to be in charge of the sale.
Snapchat is a free mobile phone app that allows users to send messages, photos, and videos that disappear after viewing.
Its shares are expected to come to the stock market in March next year, and would value the company at $25 billion (22.6 billion euros). That would also represent the largest IPO by a technology company since Chinese e-commerce giant Alibaba went public in 2014.
However investors has expressed concerns that Snapchat’s advertising sales are its only significant revenue source.
Snapchat has more than 100 million active users, about 60 percent of whom are aged 13 to 24, making it an attractive way for advertisers to reach millennials.
It is expected to have 58.6 million users in the United States by the end of 2016 and that number is expected to jump 13.6 percent to 66.6 million by next year, according to research firm eMarketer.
Its parent company Snap Inc. recently started describing itself as a camera company. Its first physical product will be glasses with an embedded video camera. Users will be able to record video from their perspective in 10-second increments, which can be synched with their smartphones.