When is the Reddit IPO coming?

Highlights

• The Reddit IPO is expected to attract huge investor attention when it finally kicks off.
  
  
• Reddit has recently filed a draft registration statement on Form S-1 relating to the IPO confidentially with the US Securities and Exchange Commission (SEC).
  
  
• Reddit, which became the go-to destination for day traders during the meme stock frenzy, is looking at a valuation of more than US$15 billion from the IPO.

Markets were abuzz with speculations that the social media platform, Reddit, might launch its initial public offering (IPO) as early as the first quarter of next year.

Reddit gained fame after its trading community helped fuel several meme stocks’ rallies, including GameStop Corp (GME) and AMC Entertainment Holdings Inc (AMC), this year.  

After the spectacular success, now Reddit is getting ready to go public.

It has recently filed a draft registration statement on Form S-1 relating to the IPO confidentially with the US Securities and Exchange Commission (SEC), the market watchdog.

The Reddit IPO is expected to attract huge investor attention when it finally takes the plunge. Some of its biggest investors include Tencent Holdings, Sequoia Capital, Andreessen Horowitz, and  Fidelity Investments.

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Reddit IPO price, offer size

The San Francisco, California-based company plans to announce the IPO listing date, share price, etc. after the SEC review process is completed and other market conditions.

It will also announce the number of shares to be offered and the price range after the feedback on its proposal.

Reddit has been making strategic investments to boost its capabilities to further expand the business globally. It had earlier raised funds through the Series E funding rounds.

In its most recent Series F funding round, the company targeted to raise US$700 million. Fidelity Management and Research Company LLC were among the top investors.

Reddit’s valuation had risen to over US$10 billion after the funding round.

In Q2 of 2021, Reddit’s advertising revenue hit the US$100-million mark for the first time, an increase of 192% compared to the same period a year ago.

It is also investing in projects to diversify its product experience such as video and audio connect. Reddit, which became a popular site for day traders during the meme stock craze, is looking at a valuation of more than US$15 billion from the IPO.

Reddit’s daily active users were roughly 52 million and over 100,000 communities at the end of October last year.

Bottomline

The year 2021 has seen a record number of IPOs, SPACs, and direct listings in the US, buoyed by robust confidence in the economic recovery. Experts believe the growth momentum will continue next year.