Daily Management Review

Reddit files for IPO in the US


The Reddit forum has confidentially filed for an IPO. The site was valued at $10bn in the last round of investment. The site expects a valuation of $15bn as a result of the initial public offering, Reuters wrote.

Antonio Zugaldia
Antonio Zugaldia
Internet forum Reddit has confidentially filed for an IPO, the company said in a blog post. The documents have been sent to the US Securities and Exchange Commission (SEC). 

The number of shares to be offered for public offering and the price corridor have not yet been determined. The IPO is expected to take place after the SEC completes its due diligence; the event also depends on market and other conditions, Reddit noted. The company is currently in a "quiet period" and cannot disclose any other information due to regulatory rules, the company said in a statement.

Reddit was valued at more than $10bn in its last round of investment in August 2021, at which time the company raised up to $700m. In September, a Reuters source said that the forum was hoping for a valuation of $15bn in an IPO. According to the agency, the initial public offering could take place in New York. As of October 2020, Reddit had around 52 million daily active users and more than 100,000 communities, Reuters added.

Reddit was created in 2005 by Steve Huffman and Alexis Ohanian. In 2021 the forum became popular with retail traders who coordinated the buying of companies' stocks: the first notable result of such actions was the rise in the price of GameStop, a US shop chain, followed by other "meme" stocks. The actions of retail traders have taken a toll on pension and hedge funds, which have been betting on falling share prices.

source: reuters.com