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Highlights
- Online message boards company Reddit is looking to hire investment banks, and lawyers, as it plans an IPO, according to Reuters
- Reddit was valued at US$ 10 billion last month in its most recent private fundraising round.
- The company expects to have a valuation of over US$ 15 billion by the time it floats on the market in early next year.
Popular online message boards company Reddit is reportedly planning a public listing in New York. It is seeking investment bankers and lawyers to help with the share floatation, according to Reuters.
The online platform was valued at about US$ 10 billion in the latest private fundraising round held in August. However, the tech company expects to have a valuation of over US$ 15 billion by the time it will float on the market.
Reddit’s IPO plans
Reddit’s initial public offering (IPO) plans will likely take place early next year, according to media reports, and the company’s IPO size and timing will depend on the market conditions.
The reports come just months after Steve Huffman, Reddit’s CEO, and co-founder, had stated that the company was considering an IPO.
The company’s advertising revenue in Q2 2021 rose by over 3 times to US$ 100 million compared to Q2 2020. It also had 52 million active users as of October 2020.
Reddit’s recent rise in popularity
The online message boards company gained wider media attention earlier this year as meme stocks such as GameStop, AMC, and others rose in prominence via subreddits such as r/WallStreetBets on the platform. The platform’s rise in popularity came as retail investors increasingly sought investment ideas and tips on the platform during the pandemic.
Reddit was launched in 2005 and was previously known for its message boards on various internet niche topics.
Bottom Line
The company has several investors who are set to gain should this IPO take place. Some of Reddit’s key investors include Fidelity Investment, Sequoia Capital, Tencent Holdings and Andreesen Horowitz.
