16 Dec 2021
Reddit Confidentially Files IPO since They Became the Go-to Destination for Day Traders
The Index Today
The Reddit Inc, which is known for its message boards, forum community that recently became the go-to destination for day traders during this year's meme stock frenzy, said on Wednesday that it had confidentially filed for an initial public offering with U.S. securities regulators.
The company was founded in 2005 by Steve Huffman and entrepreneur Alexis Ohanian, Reddit was currently valued at $10 billion in a private fundraising round earlier this year.
Reuters reported in September that the company was hoping for a more than $15 billion valuation by the time an IPO takes place.
The filing comes after U.S. IPOs touched record highs in 2021, fueled by ample liquidity due to accommodative monetary policies. This year, Robinhood Markets Inc, Coupang Inc, Coinbase Global are some of the companies that launched IPOs in the United States.
According to the present data available, Reddit had roughly 52 million daily active users and over 100,000 communities, or "sub-reddits," as of October last year. The company foresaw an explosive growth as a result of retail investors flocking to its message boards at the start of the year for tips on trading GameStop Corp and other so-called meme stocks.
Reddit did not actually disclose the number of shares to be offered or the price range of the IPO in the draft registration statement with the U.S. Securities and Exchange Commission.