Snap Inc., the company behind Snapchat, has recruited Goldman Sachs and Morgan Stanley as its lead banks for its upcoming initial public offering (IPO).

The IPO may value the chat app company as high as $25 billion. The IPO is likely to take place early next year and may pave the way for other "mega unicorn" companies to go public.

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Snap Inc. was valued at $18 billion at its last round of funding. The IPO is likely to turn Snap co-founders Evan Spiegel and Bobby Murphy into instant multi-billionaires. At $25 billion valuation, each co-founder is likely to be worth $4 billion.

Snapchat currently has a modest revenue stream, which it expects to grow multifold. With its user base of nearly 150 million subscribers, the company hopes to generate $350 million in advertising revenue. It reported a revenue of $59 million in the previous year.

The company's IPO will be the biggest social media IPO since Twitter's IPO in 2013. After its impressive debut, Twitter stock is currently floundering as the company is looking to form a viable plan for itself. According to the rumors, Twitter is exploring the possibility of getting acquired.

Snap Inc. is also looking to diversify its portfolio and move on from being merely a chat app company. It recently unveiled its smart glasses called Spectacles. This $129.99 pair of glasses lets users record videos in short bursts. While the company does not have any commercial plan for the product, it shows that the company may be looking to dabble into AR and VR market.