Reddit is preparing to launch its initial public offering (IPO) in March, according to a new report from Reuters. The report notes that the move comes more than three years after the San Francisco-based social media platform first began considering an IPO. Reddit plans to file publicly in late February and complete the IPO by the end of March.
The company is looking to sell about 10% of its shares in the IPO and will decide which IPO valuation to pursue closer to the time of listing. However, Reuters sources warned that Reddit’s IPO plans could potentially be derailed, which has happened in the past.
Reddit declined to comment on the matter.
The news comes almost two months later Bloomberg mentionted that Reddit has been in talks with potential investors about an initial public offering.
Reddit, which was founded in 2005, confidentially filed a draft registration statement with the Securities and Exchange Commission to go public in December 2021, but those plans never materialized. The move comes just months after Reddit raised $410 million in a Series F funding round led by Fidelity, valuing it at $10 billion. At the time, he had plans to close the round at $700 million.
In January 2022, it was reported that Reddit was working with Morgan Stanley and Goldman Sachs to go public and was looking at a valuation of up to $15 billion.
The company has yet to turn a profit, Reddit CEO and co-founder Steve Huffman revealed last June. Reddit has held off on launching an IPO until it approaches profitability. Its IPO plans have also been delayed by uncertainty surrounding the IPO market over the past two years, Reuters notes.
The information mentionted A few weeks ago, Reddit expected to finish 2023 with ad revenue growing more than 20% to just over $800 million.
