Social news giant Reddit has joined the listing trend, after it filed for initial public offering (IPO) with US authorities
American news aggregation and message board website Reddit has filed for an initial public offering (IPO) in the United States.
Details of the public offering are undisclosed, as Reddit has now entered a ‘quiet period’ for regulatory reasons.
Reddit is best known as a social news destination, where it combines news reports with messaging boards, to encourage discussions among online users.
Rise to prominence
Reddit was founded in 2005 by Steve Huffman and entrepreneur Alexis Ohanian.
It has approximately 52 million daily active users and over 100,000 communities, or “sub-reddits,” as of October last year.
Its messaging boards were extensively used by financial traders earlier this year during a clash between small-time traders and big financial institutions on Wall Street, over entities such as GameStop and Robinhood.
At the height of the trading frenzy in February, Reddit’s value doubled to $6 billion from a year earlier, Reuters reported.
The company was valued at $10 billion in a private fundraising round in August.
On Reddit thread WallStreetBets some users joked about potentially pumping the offering when it became available.
The website announced on Wednesday it had filed for a public listing after 16 years operating as a private organisation.
“Reddit, Inc. today announced that it has confidentially submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission (the ”SEC”) relating to the proposed initial public offering of its common stock,” the firm stated.
“The number of shares to be offered and the price range for the proposed offering have not yet been determined,” it added. “The initial public offering is expected to occur after the SEC completes its review process, subject to market and other conditions.”
“We are in a quiet period, and for regulatory reasons, we cannot say anything further,” Reddit said.
Reuters reported in September the company was hoping to hit a valuation of more than $15 billion by the time it planned to list its shares.
However it should be remembered that Reddit did not disclose the number of shares to be offered or the price range of the IPO.